Debt Recovery Checklists
& Practical Guides

Key Requirements Checklist

• Certified copy of Loan Agreement / Sanction Letter
• Board Resolution authorising execution of security documents
• Mortgage Deed / Hypothecation Agreement
• Statement of Account (bank-certified, stamped)
• Demand Notice issued under Section 13(2) SARFAESI (if parallel)
• Power of Attorney in favour of authorised officer
• CS1 / CS2 certificate from Court Fee Officer
• Vakalatnama in favour of advocate
• Affidavit-in-support with evidence of default
• Details of movable and immovable security
• Corporate borrower: ROC documents, MoA, AoA, Directors list
• Photographs of secured assets (if applicable)

Key Requirements Checklist

• NPA classification (90+ days overdue) — trigger date
• Section 13(2) Demand Notice — 60 days from dispatch
• Receipt of notice (registered post / courier / publication)
• Representation under Section 13(3A) — bank must consider
• Section 13(4) possession notice — after 60-day period
• Attachment and inventory of secured assets
• Section 14 application to Chief Metropolitan Magistrate / DM (if resisted)
• Publication of auction notice — 30 days before sale
• Reserve price determination (valuation report)
• E-auction / auction process documentation
• Sale certificate and registration of title
• Distribution of sale proceeds (Section 26E priority)

Key Requirements Checklist

• Duly filled Form 1 under NCLT (Insolvency) Rules 2016
• Resolution authorising financial creditor to file
• Certified copy of credit agreement / facility agreement
• Evidence of financial debt (bank statement showing disbursement)
• Evidence of default — NPA slip / bank certificate / account statement
• CIBIL / IU (Information Utility) record (NESL default record, if available)
• Demand notice issued to corporate debtor (though not mandatory)
• Valuation of assets if seeking interim moratorium protection
• Proposed IP (Insolvency Professional) — name, registration, consent affidavit
• List of creditors with claims (if available)
• Board resolution of corporate debtor acknowledging debt (if obtainable)
• Proof of service to corporate debtor

Key Requirements Checklist

• Original dishonoured cheque with bank endorsement (reason for return)
• Bank memo / cheque return memo from payee's banker
• Demand notice under Section 138 proviso (must dispatch within 30 days of return)
• Proof of dispatch — Speed Post / Registered Post / courier tracking
• Acknowledgement of receipt (if received) or returned envelope
• Complaint filed within 30 days of expiry of 15-day notice period
• Sworn complaint with verification under Section 200 CrPC/BNSS
• List of witnesses and documentary evidence
• Agreement / invoice evidencing legally enforceable debt
• Statement of account showing debt history
• Multiple cheques: separate complaint per cheque (separate cause of action)
• Jurisdiction: drawee bank's branch or complainant's bank — post Dashrath Rathod

Key Requirements Checklist

• Identify all personal and corporate guarantors from facility agreement
• Confirm guarantee is absolute and unconditional (not conditional)
• Review discharge provisions — waiver / release in settlement documents
• Issue demand notice to each guarantor contemporaneously with borrower
• SARFAESI Section 13(2) notice to guarantor if secured guarantee
• Section 19 DRT OA to name guarantor as co-defendant
• IBC Section 95 — application against personal guarantor before DRT (adjudicating authority)
• IP appointment and consent for personal insolvency proceedings
• Guarantor's right of subrogation — document carefully for future recovery
• Assess immovable assets of guarantor for attachment / execution