Understanding Section 31 of SARFAESI Act
Section 31 of SARFAESI Act deals with the right of appeal of the borrower against the measures taken by the secured creditor under the Act. According to this section, any person aggrieved by any of the measures taken by the secured creditor under the Act can file an appeal before the Debt Recovery Tribunal (DRT) within 45 days from the date of receipt of the notice issued by the secured creditor. The DRT has the power to stay the action taken by the secured creditor if it deems fit.
Significance of Section 31 of SARFAESI Act
Section 31 of SARFAESI Act is significant for borrowers who feel aggrieved by the actions taken by the secured creditor under the Act. It provides an opportunity to such borrowers to seek a redressal of their grievances by filing an appeal before the DRT. This section acts as a check on the powers of the secured creditor and ensures that the borrower's rights are protected.
Process of Appeal under Section 31 of SARFAESI Act
The process of appeal under Section 31 of SARFAESI Act is as follows:
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The borrower should file an appeal before the DRT within 45 days from the date of receipt of the notice issued by the secured creditor.
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The appeal should be in the form of a written petition and should contain all the necessary details and documents.
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The DRT will issue a notice to the secured creditor asking them to file their reply within a specified period.
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The DRT may conduct a hearing and may pass an interim order staying the action taken by the secured creditor if it deems fit.
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The DRT will pass a final order after considering all the facts and circumstances of the case.
