BACKGROUND

The focus of my paper is going to be on the remedies of non-performing assets, particularly, the legal remedies. Any account is deemed to have gone in NPA if, it goes in default in the payment of principal or interest for a period of 180 days, which period will be reduced to 90 days from April 2004. The Banks can demand the entire amount in case any account goes into NPA.

We all know that eventually, all non-performing assets have a very great possibility of coming into the Court system. It is after the bankers come to a conclusion that no amicable and accommodative solution to NPA borrower is possible that they send the matter to their lawyers. The focus of my paper is going to be on the present legal remedies available for recovery of bank’s NPA dues. For this purpose, the paper is concentrating on the Recovery of Debts due to Banks and Financial Institutions Act, 1993 and Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.