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Legal Challenges In Asset Recovery Under SARFAESI Act: Examining The Effectiveness Of DRTs And NCLT In Resolving NPAs


 


Vijay Singh, Dr. Ram Manohar Lohiya National Law University


ABSTRACT


The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, was enacted to empower financial institutions to recover non-performing assets (NPAs) without the intervention of courts. However, the effectiveness of this legislation has been hampered by various legal challenges, particularly in the context of Debt Recovery Tribunals (DRTs) and the National Company Law Tribunal (NCLT). This paper examines the legal and procedural hurdles faced by financial institutions in asset recovery under the SARFAESI Act, focusing on the roles and effectiveness of DRTs and NCLT in resolving NPAs. The study employs a qualitative research methodology, analyzing case laws, statutory provisions, and secondary data to identify key issues and propose recommendations for improving the efficiency of asset recovery mechanisms.



Indian Journal of Law and Legal Research

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Abbreviation: IJLLR

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ISSN: 2582-8878

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Website: www.ijllr.com

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Accessibility: Open Access

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License: Creative Commons 4.0

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Submit Manuscript: Click here

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Licensing: ​

 

All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

 

Disclaimer:

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The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.

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