Notice Under Section 13(2) SARFAESI

SARFAESI Act, 2002 — Section 13(2)

The mandatory 60-day demand notice that a secured creditor must issue to the borrower before initiating enforcement action under SARFAESI. The notice demands repayment of the outstanding secured debt within 60 days. If the borrower fails to repay, the secured creditor can proceed with taking possession, management takeover, or sale under Section 13(4).

The Section 13(2) notice is the gateway to all SARFAESI enforcement and the most litigated single document in the process. In practice the secured creditor serves this 60-day demand on the borrower after NPA classification, specifying the amount due and the secured assets, and only on the borrower's failure to pay can it move to possession or sale under Section 13(4). Service, contents and timing are everything: a notice sent before classification, served on the wrong address, or omitting required particulars is a recurring ground for setting aside the enforcement. The borrower may make a representation under Section 13(3A), which the creditor must consider and respond to with reasons; ignoring it is a fatal procedural lapse. Once the 60 days expire without payment, the creditor's right to take possession crystallises. Well-advised creditors document proof of service and dispose of any Section 13(3A) representation in writing before proceeding to Section 13(4).