Tribunals

Appeal under Section 18 of the SARFAESI Act before DRAT

An appeal under Section 18 of the SARFAESI Act, 2002 is a statutory remedy for any person aggrieved by an order of the Debts Recovery Tribunal (DRT). It seeks to set aside, modify, or reverse the DRT's decision on a Securitisation Application filed under Section 17 of the Act.

This appeal is filed before the Debts Recovery Appellate Tribunal (DRAT) having jurisdiction over the DRT that passed the order. It is governed by Section 18 of the SARFAESI Act and the Debts Recovery Appellate Tribunal (Procedure) Rules, 1994.

Draft this in LexPilot — freeHow AI drafting works
Governing law
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 — Section 18 (appeal to DRAT); Section 17, SARFAESI Act 2002 (Securitisation Application before DRT); Section 13(4), SARFAESI Act 2002 (enforcement measures); Debts Recovery Appellate Tribunal (Procedure) Rules, 1994
Sections
s. Section 13(4), SARFAESI Act 2002 — enforcement measures by secured creditors. Section 17, SARFAESI Act 2002 — application to the Debts Recovery Tribunals. Section 18, SARFAESI Act 2002 — appeal to the Debts Recovery Appellate Tribunals. Section 18, proviso — mandatory pre-deposit of 50% (reducible to 25%)
Filed before
Debts Recovery Appellate Tribunal (DRAT)

When this is the right filing

  • When a borrower or guarantor's Securitisation Application under Section 17 challenging enforcement measures has been dismissed by the DRT.
  • When the DRT has upheld the secured creditor's actions under Section 13(4) and the appellant seeks to prove non-compliance with the Act's requirements.
  • When the appellant contends that the DRT order suffers from an error of law, misappreciation of facts, or a breach of natural justice.
  • When the appellant is prepared to make the mandatory pre-deposit of 50% of the debt due, or to apply for a reduction of this amount to not less than 25%.
  • Do not use this appeal to directly challenge the initial enforcement actions of a secured creditor under Section 13(4); that challenge must first be made before the DRT via a Securitisation Application under Section 17.

What the court looks for

  • A clear statement of the DRT order being challenged and how the appellant is a person aggrieved by it.
  • Specific grounds detailing how the DRT misapplied the law, overlooked statutory compliance requirements, or erred in its factual findings.
  • Proof of compliance with the mandatory pre-deposit requirement under the proviso to Section 18, or a duly reasoned application for its reduction.
  • A structured prayer for interim relief, if any, and the final reliefs sought from the Appellate Tribunal.
  • A verifying affidavit supporting the facts and grounds stated in the appeal memorandum.

The structure the court expects

The components of the filed format, in the order they appear. LexPilot fills every one of them from your facts and papers.

  1. 1Appeal under section 18, sarfaesi act 2002
  2. 2Particulars of the appeal
  3. 3Facts of the case
  4. 4Grounds of appeal
  5. 5Pre-deposit
  6. 6Interim relief
  7. 7Relief(s) sought
  8. 8Verifying affidavit
How it opens
1. That I am the appellant in the above matter and am duly authorised and competent to swear this affidavit, being fully conversant with the facts and circumstances of the case.

Bracketed items are filled from your case.

Frequently asked questions

What is the mandatory pre-deposit requirement for filing this appeal?

The appeal must be accompanied by a deposit of fifty percent of the debt due as determined by the DRT or claimed by the secured creditor, whichever is less. The Appellate Tribunal has the discretion to reduce this amount to not less than twenty-five percent for reasons to be recorded in writing.

What is the limitation period for filing an appeal under Section 18?

The appeal must be filed within thirty days from the date of the DRT order. The Appellate Tribunal may entertain an appeal after this period if it is satisfied that there was sufficient cause for the delay.

Can new grounds be raised in the DRAT appeal that were not before the DRT?

The appeal is typically argued on the grounds that arise from the DRT's order and the record of the case. While pure questions of law may be permitted, introducing entirely new factual grounds not pleaded before the DRT is generally discouraged and requires the Tribunal's leave.

Draft this in LexPilot — free

Free trial · Drafting assistance, not legal advice — always verify before filing.

More tribunals formats

All tribunals formats →