Tell me about section 13 (8) of SARFAESI ACT and also explain pre requisites for issuing demand notice under SARFAESI ACT.

Question

Accepted Answer

Section 13(8) of SARFAESI Act allows the borrower to appeal against the measures taken by the bank under the Act.

Section 13(8) of SARFAESI Act states that the borrower can make an appeal to the Debt Recovery Tribunal (DRT) against the measures taken by the bank under the Act.
The pre-requisites for issuing a demand notice under SARFAESI Act include the borrower defaulting on repayment of the loan, the bank classifying the loan as a non-performing asset (NPA), and the bank serving a demand notice to the borrower demanding repayment.
The demand notice must specify the amount due and provide a period of 60 days for the borrower to repay the outstanding amount before further action can be taken by the bank.
If the borrower fails to repay the outstanding amount within the specified period, the bank can proceed with the sale of the secured assets without the intervention of the court.

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