Overview
The SARFAESI Act gives secured creditors fast-track recovery — and borrowers narrow but real defences. We act for banks, NBFCs, ARCs and high-value borrowers across notice, possession, auction and DRT/DRAT proceedings.
Our team represents secured creditors at every stage — from issuance of Section 13(2) notice through Section 14 possession via the District Magistrate, e-auction under the Security Interest (Enforcement) Rules, 2002, and beyond. On the borrower side, we litigate Section 17 challenges before the DRT (Delhi/Karnal/Patiala benches) and writ petitions before the Delhi High Court where jurisdictional or natural-justice violations arise.
SARFAESI matters increasingly intersect with the Insolvency and Bankruptcy Code, 2016 — particularly where the NCLT's moratorium under Section 14 IBC trumps SARFAESI proceedings. Our advisory navigates this intersection.
For Lenders
- Issuance of Section 13(2) demand notice & reply handling
- Section 13(4) symbolic & physical possession through CMM/DM under Section 14
- E-auctions under Rule 8 & 9 of the Security Interest (Enforcement) Rules
- Coordination with IBC proceedings & resolution professionals
- ARC assignment documentation and recovery
For Borrowers
- Section 17 application before DRT challenging measures
- Section 18 appeal before DRAT & writ petitions in High Court
- Settlement, OTS negotiation & sale-as-going-concern strategies
- Defence on technical grounds — defective notice, jurisdictional errors, valuation disputes
- Coordinated NCLT filings to invoke Section 14 IBC moratorium where strategic
Auction Defence and Challenge
E-auctions under SARFAESI are subject to specific procedural safeguards — 30 days notice, reserve price valuation, public notice, and 25% earnest money. Borrowers can challenge auctions on procedural defects. We have set aside auctions for inadequate notice, undervalued reserve price and procedural irregularities — and conversely, defended bank auctions against frivolous challenges.
IBC and SARFAESI Intersection
Once a CIRP is admitted under the IBC, Section 14 imposes a moratorium that suspends SARFAESI enforcement. We coordinate parallel strategies — banks may pursue resolution as financial creditors in CIRP while preserving SARFAESI rights for post-resolution enforcement.
Statutes & Regulations
Key laws governing this practice.
Who This Is For
Audiences we typically advise in this area.
- Banks and NBFCs pursuing recovery against defaulting borrowers
- ARCs taking assignment of NPAs
- Borrowers facing 13(2) notices needing strategic defence
- Auction purchasers seeking title clarity
- Promoters preserving going-concern value
Recent Outcomes
Anonymised matter highlights.
₹120 cr Auction Concluded for PSU Bank
PSU bank pursuing recovery against MSME group. Coordinated 13(2) notice, 13(4) possession via DM, e-auction completion — full recovery achieved within 14 months.
Borrower Auction Set Aside on Valuation Defect
Defended borrower whose property was being auctioned at ~40% below market value. DRT set aside auction; settled at refinanced terms protecting going concern.
Outcomes are matter-specific. Past results are not a guarantee of future performance.
Why K & K
Strategic differentiators in this practice.
- Banking-side panel mandates with multiple PSU & private banks.
- Borrower-side strategy that protects business continuity.
- Coordinated SARFAESI + IBC playbooks.
Frequently Asked
Questions our clients ask first.
Serving Delhi NCR & Beyond
Our office at A-197, LGF, Defence Colony, New Delhi 110024 is the operating base for clients across Delhi NCR — Gurgaon, Noida, Faridabad, Ghaziabad — and pan-India through a vetted local-counsel network. We routinely appear at Saket, Patiala House, Tis Hazari, Karkardooma, Rohini and Dwarka District Courts; the Delhi High Court; and the Supreme Court of India.
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