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Banking Law
A demand notice from a bank, a possession notice pasted on the gate, or a revenue recovery notice from the Taluk Office is frightening, and many borrowers either ignore it or panic. Neither helps. These proceedings follow fixed steps and fixed time limits, and a borrower who understands them early usually has more options than they realise.
Adv. K Rajesh Kannan, a High Court of Kerala advocate with over 24 years of practice, advises borrowers, guarantors and small businesses in Kerala who are facing recovery action by banks and financial institutions. The work includes replying to notices under the SARFAESI Act, advising on the remedy before the Debt Recovery Tribunal at Ernakulam, dealing with recovery proceedings under the Kerala Revenue Recovery Act, and approaching the High Court where the lender or the authorities have acted without following the law. Securitisation applications before the Debt Recovery Tribunal at Ernakulam are also handled through the office.
Where the real need is time or a workable settlement, the focus is on negotiating a one-time settlement or restructuring with the bank, backed by a clear understanding of what the law allows the bank to do and what it does not.
Banking and recovery matters handled include:
- Replies and objections to SARFAESI demand notices
- Advice on securitisation applications before the Debt Recovery Tribunal
- Challenges to possession and auction proceedings
- Kerala Revenue Recovery Act notices and attachments
- One-time settlement and restructuring negotiations
- Guarantor liability issues
- Writ petitions against unlawful recovery action
- Co-operative society disputes and co-operative bank deposits
Questions people often ask
I have received a Section 13(2) notice. How much time do I have?
The notice gives the borrower sixty days to pay the amount demanded. Within that period, you can file a written representation or objection with the bank, and the bank must communicate its reasons within fifteen days if it does not accept it. The time should be used to check the claim and work out a response, not ignored.
The bank has taken possession of my property. What can I do?
A borrower or any person aggrieved can apply to the Debt Recovery Tribunal within forty-five days of the measure taken by the bank. The Tribunal can examine whether the bank followed the procedure required by law and can set the measure aside if it did not.
Does the SARFAESI Act apply to every loan?
No. Among other exclusions, the Act does not apply to agricultural land, to loans where the amount secured does not exceed one lakh rupees, or where the amount due is less than twenty per cent of the principal and interest. Whether an exclusion applies depends on the loan documents and the property.
What is revenue recovery, and how is it different?
In Kerala, certain dues, including loans from notified banks and institutions, can be recovered through the revenue authorities under the Kerala Revenue Recovery Act, 1968. The Act was amended in 2024 to provide for payment in instalments and related relief in some cases. The notices, the officers involved and the remedies are different from SARFAESI proceedings.
To discuss a notice you have received, you can book a consultation or call the office on +91 94472 90234. Please bring the notice and your loan documents.
This page gives general information about the law in Kerala. It is not legal advice on any particular case.
