Notes on Indian law filed under Banking, SARFAESI and DRT, published by Juris Eagle.https://juriseagle.com/insights/practice/banking-sarfaesi-drten-inMon, 09 Nov 2026 12:40:42 GMThttps://juriseagle.com/disclaimerhttps://juriseagle.com/insights/invoking-a-bank-guarantee-and-the-narrow-ground-for-stopping-paymenthttps://juriseagle.com/insights/invoking-a-bank-guarantee-and-the-narrow-ground-for-stopping-paymentAn unconditional bank guarantee is a contract between the issuing bank and the beneficiary, separate from the contract it secures, so a demand that follows its terms obliges the bank to pay without weighing the dispute behind it. A court restrains payment only for a clear case of fraud, irretrievable injustice or special equities, as the Supreme Court restated in Standard Chartered Bank v. Heavy Engineering Corporation Ltd. (Civil Appeal No. 9288 of 2019, 18 December 2019). The restraint is sought under Order XXXIX rules 1 and 2 of the Code of Civil Procedure, 1908 or section 9 of the Arbitration and Conciliation Act, 1996. A suit for compensation for breach falls on its words under Article 55 of the Limitation Act, 1963, which allows three years, and a paper guarantee executed in Karnataka bears stamp duty of INR 300.Sat, 07 Nov 2026 00:00:00 GMTAdv. Ravi KumarBanking, SARFAESI & DRTbanking-sarfaesi-drtcivil-disputeshttps://juriseagle.com/insights/sarfaesi-section-17-application-and-section-18-deposithttps://juriseagle.com/insights/sarfaesi-section-17-application-and-section-18-depositA borrower, guarantor or mortgagor who wants to contest a measure taken under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) has 45 days from the measure to apply to the Debts Recovery Tribunal (DRT) under section 17, and any appeal to the Debts Recovery Appellate Tribunal (DRAT) under section 18 is not entertained until the borrower deposits 50 per cent of the debt, a sum that can be reduced to 25 per cent but never waived. The bank's own recovery application under the Recovery of Debts and Bankruptcy Act, 1993 runs the other way: the bank files, the debtor defends, and the same 50 per cent and 25 per cent figures reappear in section 21 of that Act, measured against a different base.Mon, 02 Nov 2026 00:00:00 GMTAdv. Ravi KumarBanking, SARFAESI & DRTbanking-sarfaesi-drthttps://juriseagle.com/insights/sarfaesi-clock-2026https://juriseagle.com/insights/sarfaesi-clock-2026On an illustrative INR 25 crore non-performing exposure, a month of drift anywhere in the SARFAESI sequence costs about INR 38 lakh, roughly 1.5 per cent of the outstanding, and most of it is destroyed rather than transferred. Neither side collects it.Fri, 09 Oct 2026 00:00:00 GMTAdv. Ravi Kumar, Adv. Harsha Swaroop PBanking, SARFAESI & DRTbanking-sarfaesi-drthttps://juriseagle.com/insights/ibc-amendment-half-in-forcehttps://juriseagle.com/insights/ibc-amendment-half-in-forceThe Insolvency and Bankruptcy Code (Amendment) Act, 2026 received assent on 6 April 2026, and most of it commenced on 26 May 2026. The two chapters that drew the loudest commentary, the creditor-initiated insolvency resolution process and group insolvency, were left out of the commencement notification and are not law today.Wed, 16 Sep 2026 00:00:00 GMTAdv. Harsha Swaroop PBanking, Insolvency & DRTinsolvencybanking-sarfaesi-drthttps://juriseagle.com/insights/wilful-defaulter-classification-two-committeeshttps://juriseagle.com/insights/wilful-defaulter-classification-two-committeesUnder the Reserve Bank of India (Commercial Banks, Treatment of Wilful Defaulters and Large Defaulters) Directions, 2025, a commercial bank can label a borrower a wilful defaulter only through two committees and two written windows, 21 days for the borrower's reply to a show cause notice and 15 days for a representation to the review committee, and where the account was screened as a wilful default case at the outset, the whole process has to finish within six months of the loan becoming a non-performing asset (NPA). The label applies from INR 25 lakh of outstanding, it keeps new credit away for years after the name leaves the list, and it does not lift on part payment of a compromise.Fri, 05 Dec 2025 00:00:00 GMTAdv. Ravi KumarBanking, SARFAESI & DRTbanking-sarfaesi-drthttps://juriseagle.com/insights/digital-lending-and-the-five-per-cent-guaranteehttps://juriseagle.com/insights/digital-lending-and-the-five-per-cent-guaranteeThe Reserve Bank of India (Digital Lending) Directions, 2025 took three circulars written over five years and replaced them with one, and in doing so moved the default loss guarantee out of a standalone 2023 circular and into a chapter of the regime it always belonged to. The commercial terms are unchanged in substance: cover is capped at five per cent of what the portfolio disbursed, it is held in cash or in something a lender can realise like cash, and the lender invokes it within 120 days of a loan going overdue. What changed is the frame. A guarantee is now read against the same instrument that fixes the key fact statement, the cooling off right, the fee route and the directory filing, so an arrangement that is sound on the five per cent and wrong on the fees fails in one document rather than two.Tue, 11 Nov 2025 00:00:00 GMTAdv. Harsha Swaroop PFinancial technology and paymentsbanking-sarfaesi-drttechnology-data-and-productcontracts-and-procurement2024 Juris Eagle. This website is intended solely for informational purposes and does not constitute solicitation or advertisement under applicable Bar Council regulations. The transmission or receipt of information through this platform does not create an advocate-client relationship. Legal advice is rendered only upon formal written engagement with the firm.