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Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q129: A borrower is aggrieved by the action of a bank taking possession of his commercial shop under Section 13(4) of the SARFAESI Act. He wishes to file an application against this action. Which forum must he approach and within what timeline?

A
The Civil Court within 60 days of the possession notice.
B
The Debt Recovery Tribunal (DRT) under Section 17 within 45 days from the date of taking measures.
C
The Debt Recovery Appellate Tribunal (DRAT) directly within 30 days.
D
The High Court via a Writ Petition immediately.
✅ Correct Answer: B
Remedy: Under Section 17 of the SARFAESI Act, any person, including the borrower, aggrieved by any of the measures referred to in Section 13(4) taken by the secured creditor may make an application to the Debt Recovery Tribunal (DRT) having jurisdiction.
Timeline: This application must be made within 45 days from the date on which such measures had been taken.
Exclusion of Civil Court: Section 34 of the SARFAESI Act bars the jurisdiction of Civil Courts to entertain any matter which the DRT or DRAT is empowered to determine.
Therefore, the remedy lies specifically with the DRT.