Module: | Enforcement and Appeals
Q7: Consider the following statements regarding the rights of a borrower to appeal against enforcement actions taken by a secured creditor under the SARFAESI Act:
1. Any person aggrieved by the measures taken under Section 13(4) may file an application to the Debt Recovery Tribunal (DRT) within 45 days.
2. A further appeal to the Debt Recovery Appellate Tribunal (DRAT) can be entertained only if the borrower deposits at least 50% of the debt amount due (reducible to 25%).
Which of the statements given above are correct?
2. A further appeal to the Debt Recovery Appellate Tribunal (DRAT) can be entertained only if the borrower deposits at least 50% of the debt amount due (reducible to 25%).
Which of the statements given above are correct?
✅ Correct Answer: C
Section 17 allows a borrower to approach the DRT within 45 days of the bank taking measures under Section 13(4). Section 18 allows a further appeal to the DRAT, but it carries a strict pre-condition: the borrower must deposit 50% of the debt due as determined by the DRT (which the Tribunal may reduce to not less than 25%).