Recovery Suits & Bank Claims

Even while taking coercive measures to seize mortgaged property under the SARFAESI Act, banks routinely file Original Applications (OAs) before the Debt Recovery Tribunal (DRT) under the RDDBFI Act. Their goal is to obtain a formal Recovery Certificate—a dangerous legal weapon that allows them to attach your un-mortgaged personal properties, freeze your operational bank accounts, and garnish payments from your debtors.

At Khokher Advocates, we do not simply accept the bank’s version of the debt. We treat bank recovery suits as aggressive commercial litigation. We meticulously cross-examine bank ledgers, challenge inflated liability claims, and protect our clients’ remaining liquid assets from arbitrary attachment.

Defending Original Applications (OAs)

Banks often file recovery suits relying on automated ledgers, blank signed documents, and heavily compounded interest, assuming the borrower will not mount a technical defense. We aggressively contest the bank’s claims by:

• Challenging Inflated Ledgers: Scrutinizing the statement of accounts under the Bankers’ Books Evidence Act to expose illegal capitalization of penal interest, hidden charges, and failure to credit borrower deposits.

• Defeating Limitation Tactics: Seeking the dismissal of recovery suits where the bank has manipulated account dates or utilized outdated acknowledgment letters to artificially extend the legal limitation period for filing the suit.

Corporate Counter-Claims & Set-Offs

A defense should not just be reactive; it must go on the offensive. When a bank’s arbitrary actions—such as abruptly freezing sanctioned working capital, unlawfully withholding a No Objection Certificate (NOC), or wrongfully classifying an account as an NPA—cause immense financial damage to a business, we strike back.

• Filing Heavy Counter-Claims: We file statutory counter-claims and set-offs against the bank within the DRT proceedings, holding the financial institution legally liable for the loss of business, reputational damage, and operational collapse caused by their breach of contract.

Blocking Garnishee Orders & Asset Attachments

During the pendency of a recovery suit, banks frequently file interim applications to cripple the borrower financially before the trial even concludes.

• Defending Operational Accounts: We aggressively litigate against “garnishee orders” and interim attachment applications, preventing the bank from freezing your company’s current accounts or intercepting payments owed to you by third-party vendors.

• Protecting Unsecured Assets: We secure tribunal orders to shield your unpledged personal assets, inventory, and business machinery from being preemptively attached by the bank’s recovery officers.