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CS Professional · Banking and Insurance - Laws and Practice · Performing and Non Performing Assets

Kaveri Exports Ltd., aggrieved by the bank taking possession of its assets under Section 13(4) of SARFAESI, wants to challenge the action. Where should it first file its application?

The aggrieved borrower should first apply to the Debts Recovery Tribunal, which hears challenges to measures taken under Section 13(4) of SARFAESI within the prescribed time. Appeals from the DRT go to the Debts Recovery Appellate Tribunal, not directly to the Supreme Court.

  1. ADebts Recovery TribunalCorrect
  2. BSupreme Court directly
  3. CConsumer Disputes Redressal Commission
  4. DRegistrar of Companies

Explanation

Section 17 of the SARFAESI Act lets any person aggrieved by measures under Section 13(4) apply to the Debts Recovery Tribunal within 45 days. Appeal from the DRT lies to the DRAT. The Supreme Court is not the first forum.

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