SARFAESI, DRT & IBC Recovery Counsel
for Asset Reconstruction Companies

Yes — critically. When a bank assigns an NPA account to an ARC under Chapter IV of the SARFAESI Act, the ARC steps into the shoes of the bank as "secured creditor." If a DRT Original Application was filed by the bank, it can be substituted by the ARC as successor-in-interest. Unified Chambers handles the legal substitution in DRT proceedings, CERSAI transfer of charge registration, and any related DRAT proceedings.

Yes. Under Section 13 SARFAESI Act, an ARC that has acquired the security interest from the originating bank or financial institution is entitled to enforce it as a "secured creditor." The ARC must register the transfer of security interest at CERSAI. Unified Chambers reviews CERSAI transfer registration, issues Section 13(2) notices in the ARC's name, and manages the full enforcement cycle including Section 14 DM/CMM applications and e-auction.

Unified Chambers accepts bulk matter instructions from ARCs on a portfolio basis. Each account is tracked through a centralised matter management sheet. Monthly status reports are delivered covering all active accounts simultaneously. The firm prioritises accounts by recovery potential and legal urgency. Bulk filing of DRT OAs across multiple accounts (staggered to avoid simultaneous court dates) is handled with a dedicated matter management workflow.

Section 26E of the SARFAESI Act (inserted by the Finance Act 2016) gives secured creditors — including ARCs that have acquired the security interest — a priority claim over the proceeds from enforcement over all other dues, including government dues and workmen dues (except ESIC and EPF). Unified Chambers actively enforces Section 26E priority in SARFAESI auction proceeds distribution, DRT execution proceedings, and IBC waterfall disputes, ensuring the ARC's security interest rank is preserved.

Yes. An ARC that has acquired a financial debt is a "financial creditor" under Section 5(7) of the IBC and may file a Section 7 CIRP petition before the NCLT on the basis of default on the acquired debt. The ARC must demonstrate the assignment of the financial contract. Unified Chambers files Section 7 petitions for ARCs, represents them in the CoC, and manages resolution plan evaluation alongside parallel SARFAESI enforcement.