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Legal Resources · Debt Recovery Law · India

Acts, Rules & Judgments
Debt Recovery Law India

Key legislation, subordinate rules, RBI circulars, landmark Supreme Court judgments, and procedural guides — curated and annotated by Advocate Subodh Bajpai, Unified Chambers and Associates.

21
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Jump to:Primary ActsSubordinate LawSARFAESI & DRT PrecedentsNI Act 138 PrecedentsProcedural Guides
Primary Acts4 Resources

Key Legislation

The four principal statutes that govern institutional debt recovery in India — DRT, SARFAESI, NI Act, and IBC.

Primary Legislation→

Recovery of Debts and Bankruptcy Act, 1993 (RDDB Act)

The principal statute establishing Debt Recovery Tribunals. Governs O.A. filing, interim relief under Section 19(7), Recovery Certificates, and DRAT appeals. DRTs have jurisdiction for claims above ₹20 lakhs.

Primary Legislation→

SARFAESI Act, 2002

Provides for extrajudicial enforcement of security interest by secured creditors — without court intervention. Covers Section 13(2) demand, Section 13(4) possession, Section 14 CMM/DM, and Section 17 DRT challenge.

Primary Legislation→

Negotiable Instruments Act, 1881

Governs cheques, bills of exchange, and promissory notes. Section 138 creates criminal liability for cheque dishonour — up to 2 years imprisonment or fine up to twice the cheque amount. Section 143A provides interim compensation.

Primary Legislation→

Insolvency and Bankruptcy Code, 2016

Comprehensive framework for corporate insolvency. Section 7 (financial creditors) and Section 9 (operational creditors) allow NCLT-supervised CIRP. Priority waterfall under Section 53 governs liquidation distribution.

Subordinate Law5 Resources

Rules, Regulations & RBI Circulars

Procedural rules and regulatory circulars that govern the mechanics of DRT proceedings, SARFAESI enforcement, IBC resolution, and NPA classification.

Rules & Regulations

Debt Recovery Tribunal (Procedure) Rules, 1993

Procedural rules governing DRT proceedings including O.A. filing format, service of summons, affidavit requirements, cross-examination, and hearing procedure before the Presiding Officer.

Rules & Regulations

Security Interest (Enforcement) Rules, 2002

Rules governing enforcement of security interest under SARFAESI — notice format, valuation, symbolic/physical possession, auction procedure, bid amounts, and sale confirmation.

Rules & Regulations

IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016

Regulations governing the Corporate Insolvency Resolution Process under IBC — IRP appointment, CoC constitution, information memorandum, expression of interest, and resolution plan submission.

Rules & Regulations

RBI Master Circular on Prudential Norms for NPA Classification

Foundational RBI circular defining NPAs, sub-standard assets, doubtful assets, and loss assets. Defines provisioning requirements and the basis for initiating recovery action under SARFAESI and DRT.

RBI Directions→

RBI Master Directions for NBFCs — All 35 Directions (2025)

Complete collection of 35 RBI Master Directions governing Non-Banking Financial Companies under the Scale Based Regulation (SBR) framework — registration, governance, capital adequacy, IRAC, KYC, and specialised NBFC categories. Download PDFs.

SARFAESI & DRT Precedents4 Resources

Landmark Judgments — SARFAESI & DRT

Supreme Court judgments that define the scope of SARFAESI enforcement, DRT jurisdiction, secured creditor priority, and writ court jurisdiction.

SARFAESI & DRT→

Mardia Chemicals v. Union of India [2004] SC

Constitutional validity of SARFAESI Act upheld by the Supreme Court. Section 17 DRT application is an adequate alternative remedy — High Court writ jurisdiction is excluded.

SARFAESI & DRT→

United Bank of India v. Satyawati Tondon [2010] SC

High Courts should not entertain writ petitions bypassing the DRT/DRAT alternative remedy mechanism under SARFAESI. The bar is near-absolute.

SARFAESI & DRT→

ICICI Bank v. Official Liquidator [2010] SC

Priority of secured creditors under SARFAESI over claims in company winding-up proceedings. Secured creditors can realise security interest even during liquidation.

SARFAESI & DRT→

Committee of Creditors of Essar Steel v. Satish Kumar Gupta [2019] SC

Landmark IBC judgment on primacy of secured creditors in resolution plans and the commercial wisdom doctrine — courts cannot interfere with CoC decisions on plan approval.

NI Act 138 Precedents4 Resources

Landmark Judgments — NI Act Section 138

Supreme Court rulings that govern cheque bounce prosecution — territorial jurisdiction, Section 139 presumption, interim compensation, and vicarious liability.

NI Act 138→

Dashrath Rupsingh Rathod v. State of Maharashtra [2014] SC

Landmark ruling — territorial jurisdiction strictly restricted to the payee's bank branch. Complaint filed at drawer's location is not maintainable. Led to 2015 legislative amendment.

NI Act 138→

Meters & Instruments v. Kanchan Mehta [2018] SC

Summary trial under Section 143 NI Act; importance of speedy disposal. Acquittal in NI Act proceedings is no bar to a civil suit for the same debt.

NI Act 138→

Surinder Singh Deswal v. Virender Gandhi [2019] SC

Scope of Section 143A interim compensation — Court has discretion to direct payment. Non-compliance with Section 143A order is grounds for dismissal of accused's defence.

NI Act 138→

Rangappa v. Sri Mohan [2010] SC

Presumption under Section 118/139 NI Act — once a cheque is established, a legally enforceable debt is presumed. Standard and burden of rebuttal by the accused explained.

Procedural Guides4 Resources

Step-by-Step Practice Guides

Detailed procedural guides authored by Advocate Subodh Bajpai covering the practical mechanics of DRT, SARFAESI, IBC, and NI Act proceedings.

Guide→

How to File a DRT Case — Complete Guide 2026

Step-by-step guide to filing an Original Application at DRT, simultaneous Section 19(7) attachment application, guarantor strategy, limitation, and Recovery Certificate.

Guide→

SARFAESI Section 13(2) Demand Notice — Drafting Guide

Mandatory content requirements, five common defects that void enforcement, correct service procedure, and dual-track SARFAESI + DRT strategy.

Guide→

IBC Section 7 CIRP Petition — Complete Guide for Financial Creditors

Eligibility, documents, NCLT procedure, moratorium, CoC participation, and resolution plan evaluation — complete guide for triggering CIRP.

Guide→

Section 138 NI Act Cheque Bounce — Complete Procedure Guide

Demand notice drafting, jurisdiction under Dashrath Rathod, complaint filing, Section 143A interim compensation, trial, conviction, and enforcement.

Legal Guidance

Need Specialist Advice?

The above resources are for general informational purposes. For specific legal advice on your debt recovery matter, consult Advocate Subodh Bajpai — free initial consultation for matters above ₹50 lakhs.

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