DRT Dismisses Borrowers’ Plea Based on Tehsildar’s Possession Letter

DRT Ruling on Limitation and SARFAESI Measures

The Debt Recovery Tribunal (DRT) has dismissed a plea from borrowers that relied upon a Tehsildar's possession letter, ruling that such letters do not qualify as a 'measure' under the SARFAESI Act for the extension of limitation periods. Thus, the borrowers were deemed to have failed in filing their application within the stipulated 45-day window after the creditor's action.

This ruling unequivocally establishes that only actions that are formally recognized as measures under the SARFAESI Act can extend time limits associated with recovery actions, reinforcing the need for borrowers to act promptly once aware of creditor measures.

Practitioners advising clients in financial disputes should be aware of this judgment as it sets a strict precedent concerning limitation periods under the SARFAESI framework.