NPA Legal Advisory – IBC, SARFAESI, RDDBFI
We at AKIVA based on our experience provide our clients advise pertaining to legal matters with respect to;
- Insolvency and Bankruptcy Code, 2016
- The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)
- The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act)
Insolvency and Bankruptcy Code, 2016
Insolvency and Bankruptcy Code, 2016 provides a specialised forum to oversee all insolvency and liquidation proceedings for corporates, SMEs and MSMEs. It empowers all classes of creditors (secured & unsecured lenders, employees, trade creditors, regulatory authorities) to trigger a resolution process in case of non-payment of a valid claim. The Banks and NBFC’s these days are referring the recovery processes of debts through to IBC. We have various clients debts recovery processes being referred to IBC and we have been providing real time advise and solutions for the same.
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)
Under the powers of SARFAESI Act, banks and financial institutions are empowered to take possession of the secured/mortgaged assets when the borrowers are unable to repay the loans and their accounts are classified as NPAs. We guide the clients on the proceedings under SARFAESI Act and have legal counsels working in tandem on our advice for the client.
The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act)
After the loan accounts being termed as NPA, the bank’s undertake recovery action for the loan. Under the RDDBFI Act, the banks file recovery petition in the Debt Recovery Tribunal (DRT) for the recovery of loan. We guide the clients on the proceedings of the DRT and have legal counsels working in tandem on our advice for the client.