Non-Performing Assets (NPAs) represent one of the most critical challenges facing India's financial ecosystem. When a borrower defaults on loan repayments for 90 days or more, the account is classified as an NPA — triggering a cascade of legal and financial consequences for both the borrower and the lending institution. Adv. Subodh Bajpai, Senior Partner at Corpus Juris Legal and Advocate at the Delhi High Court, offers expert advisory and litigation services for NPA resolution, combining his deep legal expertise (LLB, LLM) with financial acumen (MBA Finance, XLRI Jamshedpur).
Whether you are a borrower facing NPA classification and seeking resolution, or a lending institution pursuing recovery of non-performing assets, Corpus Juris Legal provides end-to-end legal support under the SARFAESI Act, 2002, the Recovery of Debts and Bankruptcy Act (RDDBFI Act), 1993, the Insolvency and Bankruptcy Code (IBC), 2016, and all applicable provisions of the Bharatiya Nyaya Sanhita (BNS), Bharatiya Nagarik Suraksha Sanhita (BNSS), and Bharatiya Sakshya Adhiniyam (BSA).
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) empowers banks and financial institutions to recover NPAs without the intervention of courts. Under Section 13(2) of the SARFAESI Act, secured creditors can issue a notice to the borrower demanding repayment of outstanding dues within 60 days. If the borrower fails to comply, the secured creditor can exercise rights under Section 13(4) including:
→ Taking possession of secured assets
→ Sale or lease of secured assets
→ Managing the borrower's business or appointing a manager
→ Recovery of money receivable from third parties
The borrower, however, has the right to file an application under Section 17 of the SARFAESI Act before the Debt Recovery Tribunal (DRT) challenging the actions of the secured creditor. Corpus Juris Legal represents both creditors and borrowers in SARFAESI proceedings with a strategic approach tailored to each client's specific circumstances.
Complete legal representation in SARFAESI proceedings — from drafting and responding to Section 13(2) notices, filing and defending Section 17 applications before DRT, to challenging orders before DRAT (Debt Recovery Appellate Tribunal) and High Courts. We handle possession notices, auction proceedings, and all related litigation.
Filing and defending Original Applications (OAs) before the Debt Recovery Tribunal under the RDDBFI Act, 1993. Appeals before the Debt Recovery Appellate Tribunal (DRAT). Execution proceedings for recovery certificates. Interim applications for stay, injunction, and attachment of assets.
Filing and defending applications under the Insolvency and Bankruptcy Code, 2016 before the National Company Law Tribunal (NCLT). We handle Corporate Insolvency Resolution Process (CIRP), representation in Committee of Creditors (CoC) meetings, resolution plan evaluation, and liquidation proceedings.
Strategic negotiation and facilitation of One-Time Settlement (OTS) / compromise settlements between borrowers and lenders. We analyze the borrower's financial position, draft OTS proposals compliant with RBI guidelines, negotiate with banks and ARCs, and ensure legally binding settlement documentation.
Preparation and negotiation of loan restructuring proposals under RBI's restructuring frameworks. We assist borrowers in presenting viable resolution plans to lenders, including revised repayment schedules, interest rate modifications, moratorium periods, and conversion of debt to equity where applicable.
Defence representation for borrowers facing wilful defaulter classification by banks and financial institutions. We challenge improper classifications, represent borrowers before the review committee, file writ petitions before High Courts, and ensure compliance with RBI Master Circulars on wilful defaulter identification.
Our NPA Resolution practice operates under the following key statutes and frameworks:
→ SARFAESI Act, 2002 (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act)
→ Recovery of Debts and Bankruptcy Act (RDDBFI Act), 1993
→ Insolvency and Bankruptcy Code (IBC), 2016
→ Bharatiya Nyaya Sanhita (BNS) 2023 — replaced IPC
→ Bharatiya Nagarik Suraksha Sanhita (BNSS) 2023 — replaced CrPC
→ Bharatiya Sakshya Adhiniyam (BSA) 2023 — replaced Indian Evidence Act
→ Negotiable Instruments Act, 1881 (Section 138)
→ Indian Contract Act, 1872
→ Transfer of Property Act, 1882
→ Companies Act, 2013
→ RBI Master Circulars and Guidelines on NPA Management
Whether you are a borrower seeking NPA resolution or a lender pursuing recovery, fill out the form below and our team will connect with you to discuss your case.
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