Banking Law Firm in Kolkata for Loan and Recovery Disputes | Lawspicious

Bank Loan Recovery & SARFAESI Proceedings

When borrowers default, banks initiate recovery proceedings through:

• Notices under the SARFAESI Act
• Proceedings before the Debt Recovery Tribunal (DRT)
• Enforcement of secured assets
• Recovery suits for unsecured loans

Secured loans allow banks to enforce collateral through statutory powers. Unsecured loans require court intervention and decree execution.

For court representation in recovery disputes, visit: Litigation Lawyer in Kolkata.

Representing Borrowers in Banking Disputes

Borrowers facing recovery action may have valid legal defenses, including:

• Improper SARFAESI notice procedure
• Incorrect loan accounting or excess charges
• Defective loan documentation
• Improper asset valuation
• Violation of RBI guidelines

Strategic defense requires examining compliance with the Banking Regulation Act, RBI directions and statutory recovery procedures.

Banking Regulatory Compliance & RBI Guidelines

Banks operate under detailed regulatory frameworks issued by the Reserve Bank of India. These regulations govern:

• Loan documentation standards
• Customer treatment norms
• Asset classification and provisioning
• Recovery conduct and communication practices

Violations may give borrowers grounds to approach regulatory authorities or seek remedies under applicable laws.

Debt Recovery Tribunal (DRT) Proceedings

The DRT handles recovery claims filed by banks and financial institutions. Proceedings often involve:

• Original applications by banks
• Interim stay petitions
• Appeals before the Debt Recovery Appellate Tribunal (DRAT)
• Objections to asset possession and sale

Effective DRT representation requires procedural precision and strategic negotiation alongside litigation.

One-Time Settlement (OTS) Negotiations

Many banking disputes conclude through structured One-Time Settlement negotiations. Banks assess factors such as:

• Age of non-performing asset (NPA)
• Security coverage value
• Litigation costs and delay risk
• Provisioning already made

Properly structured settlement proposals aligned with the bank’s recovery assessment have higher acceptance probability.

For structured negotiation support, visit: Settlement & Dispute Resolution.

Personal Guarantees & Promoter Liability

Corporate loans often include personal guarantees from directors or promoters. Upon default, banks may proceed against both corporate borrowers and guarantors.

Key considerations include:

• Scope and validity of the guarantee
• Invocation procedure compliance
• Extent of personal asset exposure
• Parallel insolvency proceedings

Negotiation of guarantee terms during loan documentation significantly affects future enforcement risk.

For contract structuring advisory, explore: Contract Drafting Lawyer.

Cheque Bounce & Criminal Proceedings

Banking disputes sometimes involve criminal complaints under Section 138 of the Negotiable Instruments Act for dishonour of cheques.

These proceedings may run parallel to civil recovery cases and can create additional pressure in negotiations.

For criminal defense matters, visit: Cheque Bounce Lawyer.

Secured vs Unsecured Loan Recovery

The recovery strategy differs significantly depending on whether the loan is secured.

• Secured Loans: Banks can enforce collateral under SARFAESI without prior court decree.
• Unsecured Loans: Banks must obtain court decrees before asset execution.

This distinction affects negotiation leverage, recovery timelines and settlement dynamics.

Why Choose Lawspicious as Your Banking Law Firm in Kolkata?

• Representation for banks and borrowers
• Strategic DRT and SARFAESI handling
• Structured settlement negotiation
• Regulatory compliance advisory
• Integrated litigation and criminal defense support

Discuss your banking dispute with our legal team: Book a Consultation.