In short: never ignore a notice from a bank. Each type carries a deadline, and your strongest options exist only within it: 60 days to pay or object under a SARFAESI Section 13(2) notice, 45 days to go to the Debt Recovery Tribunal after the bank acts, and a short time to reply to a cheque-bounce notice. Read it, note the date, and get advice straight away.
Which notice have you received?
- Demand or legal notice from the bank's advocate. A formal demand before the bank files a suit, arbitration or tribunal case. Reply in writing, disputing wrong figures and stating your position.
- Cheque or NACH bounce notice. Under Section 138 of the Negotiable Instruments Act (or Section 25 of the Payment and Settlement Systems Act for auto-debits), you have 15 days from receiving it to pay the amount before a criminal complaint can be filed.
- SARFAESI Section 13(2) notice. For a secured loan that has become a non-performing asset. You have 60 days to pay the amount demanded.
- SARFAESI Section 13(4) possession notice. The bank is taking possession of the secured property. It is usually also published in newspapers.
- Sale or auction notice. The bank intends to sell the property. Under the Security Interest (Enforcement) Rules, notice must be given before the sale, generally 30 days.
- DRT summons. The bank has filed an Original Application in the Debt Recovery Tribunal, which hears recovery cases of ₹20 lakh and above.
Responding to a SARFAESI Section 13(2) notice
The SARFAESI Act lets banks enforce security without going to court, but only by following its steps. Within the 60 days you may pay, or send a written representation or objection under Section 13(3A): for example that the amount is wrong, the account was wrongly classified as an NPA, or you propose a settlement. If the bank rejects it, it must reply with its reasons within 15 days. This reply matters later if you challenge the bank's action.
The Act does not apply to some cases, such as agricultural land and loans below ₹1 lakh, and the account must be properly classified as an NPA.
After a Section 13(4) possession notice
The bank may take symbolic possession and, with an order of the Chief Metropolitan Magistrate or District Magistrate under Section 14, physical possession. If the bank has not followed the law, you can file a securitisation application under Section 17 before the Debt Recovery Tribunal within 45 days of the measure, and ask for a stay where justified. Grounds can include a defective notice, wrong NPA classification, no proper reply to your objection, or an undervalued sale.
If you have been sued in the Debt Recovery Tribunal
The bank's Original Application is served with summons to appear. You file a written statement, normally within 30 days, setting out your defence and any counter-claim. You can raise settlement during the case. Appeals go to the Debt Recovery Appellate Tribunal, usually with a pre-deposit. Kolkata has its own Debt Recovery Tribunals, and case status can be checked on the DRT website.
Questions people ask
I received a legal notice from the bank for a loan. What should I do?
Read it carefully, note the deadline, collect your loan documents and statement, and send a written reply within the time given, preferably through an advocate. Dispute wrong amounts and, if you want to settle, say so in writing.
I received a SARFAESI notice from my bank. What should I do next?
For a Section 13(2) notice you have 60 days. Either pay, or file a written objection under Section 13(3A) explaining why the demand is wrong or proposing terms. Keep proof of delivery. Get legal advice before the 60 days end.
How do I respond to a Section 13(2) SARFAESI notice?
Send a representation under Section 13(3A) to the authorised officer: dispute the amount or the NPA classification if wrong, give your proposal, and ask for the documents relied on. The bank must answer with reasons within 15 days if it rejects it.
What is a Section 13(4) SARFAESI action?
It is the bank taking possession of, or managing, the secured property after the 60 days under Section 13(2). You can challenge it before the Debt Recovery Tribunal under Section 17 within 45 days.
I received a DRT notice. What should I do?
Do not miss the date in the summons. Engage an advocate, collect your loan records, and file a written statement within the time allowed. Settlement can still be discussed while the case is pending.
How can I check DRT case status?
Case status for Debt Recovery Tribunals, including those in Kolkata, is available on the official DRT website using the case number or party name. Your advocate will also track each date.
How do I challenge a bank auction notice?
If the bank has not followed the SARFAESI procedure, for example no proper notice, no reply to your objection, or an unfair reserve price, you can file a Section 17 application before the Debt Recovery Tribunal and ask for a stay. Act quickly: the 45-day limit runs from the bank's measure.
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Become a ClientCall +91 81001 21141This guide gives general information about the law in India as on 10 November 2026. It is not legal advice for your situation, and reading it does not create a lawyer-client relationship. Rules and limits change; please take advice on your own facts.