Artha Rin & Banking Recovery

What this covers

The Artha Rin Adalat is the court for recovery of loans by banks and financial institutions. We appear in it for both sides: defending borrowers, mortgagors and guarantors, and acting for lenders in enforcing mortgages and realising security.

For borrowers and guarantors

Defences do exist: disputes over the account and how interest was calculated, defective or unenforceable security, and procedural failures in enforcement. The Act also provides for settlement, and a negotiated restructuring is frequently a better outcome than fighting a decree that will be executed against the property anyway.

For lenders

We act on enforcement of mortgages and the sale of secured property, and on the execution stage, which is where recovery is actually realised.

What helps

• The loan and security documents, and the mortgage deed
• The statement of account and the interest calculations
• The notices and demands received from the lender
• Any restructuring or rescheduling already discussed

Where it is heard, and how long it takes

The matter is heard in the Artha Rin Adalat, with appeal as the statute provides and a deposit requirement attaching to an appeal against a decree. The procedure is faster than an ordinary civil suit by design. Execution and sale of the security follow the decree, and that is where borrowers feel the pressure.