SARFAESI & Debts Recovery Law Manual By Taxmann – Edition 2026

SARFAESI & Debts Recovery Law Manual is a comprehensive, practice-first reference that consolidates, within a single, navigable volume, the complete legal and procedural framework for secured-creditor enforcement and tribunal-based debt recovery in India. It is built around the two principal recovery regimes used in banking and stressed-asset work:

• The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (SARFAESI)—covering enforcement of security interest, possession and sale of secured assets, securitisation/asset reconstruction, and the Central Registry (CERSAI) ecosystem; and
• The Recovery of Debts and Bankruptcy Act 1993 (RDBA)—covering the functioning of Debt Recovery Tribunals (DRTs) and Debt Recovery Appellate Tribunals (DRATs), original applications, appellate practice, recovery execution, and related delegated legislation

The Manual is intentionally organised as a two-book law manual (Book One: SARFAESI; Book Two: RDBA). Each book follows a consistent pattern – Practical Guide → Statutory Text (with arrangement and index) → Rules (with formats and fees) → Circulars/Directions/Notifications/Orders → Case-Law Digest—so the reader can move seamlessly from concept to execution to litigation support without consulting multiple sources.

This Manual is designed for stakeholders who need accuracy, procedural certainty, and speed in recovery and enforcement matters:

• Banks/Financial Institutions/NBFCs (legal, recovery, compliance, and stressed assets teams) executing SARFAESI measures and DRT filings
• Asset Reconstruction Companies (ARCs) & Professionals working on securitisation/asset reconstruction and RBI-facing obligations (including reporting and governance requirements reflected in the included directions)
• Advocates & Law Firms handling SARFAESI notices, possession actions, auctions, borrower challenges, DRT/DRAT litigation, and appellate strategy
• Authorised Officers & Recovery Personnel responsible for rule-compliant possession/sale documentation (where format and timelines are critical)
• Tribunals ecosystem users—presiding officers, recovery officers, registry teams—who need the statute, rules, and procedural instruments in one place, including e-filing rules

The Present Publication is the 2026 Edition, amended up to 10^th December 2025. This book is edited by Taxmann’s Editorial Board, with the following noteworthy features:

• [Two-book Structure] Book One (SARFAESI) and Book Two (RDBA) are each arranged as:
  • Guide
  • Act
  • Rules
  • Notifications/Circulars
  • Case-law Digest
  • This enables quick cross-navigation between procedural steps and legal authority
• [Substantive Guide] The Manual begins with guided chapters that explain enforcement architecture, remedies, and tribunal pathways—reducing interpretation time for practitioners.
• [Rules and Filing Formats] The inclusion of procedural rules is complemented by appendices/templates (possession documentation, sale/auction formats, and tribunal filing formats) and fee mechanisms, making it operational for actual enforcement and litigation
• [Central Registry (CERSAI) & Registration Support] Includes SARFAESI Central Registry Rules 2011 and supporting material, providing the compliance layer around registration and inspection of security interest records
• [RBI and Government Instruments Consolidated for Compliance] The Manual includes RBI directions and circulars relevant to enforcement, ARCs, and transparency, such as the RBI circular requiring secured creditors (regulated entities) to publish information on secured assets possessed under SARFAESI, with periodic updating expectations
• [Dedicated Case-law Digests] Separate digests under SARFAESI and RDBA support quick jurisprudential reference for drafting and arguments

The coverage of the book is as follows:

• Book One – SARFAESI Act 2002
  • Division One – Guide to SARFAESI Act 2002
    • This Division provides a practice-oriented guide explaining the structure, objectives, and working of the SARFAESI Act 2002, before the reader moves to the statutory text
    • It begins with an Overview of the SARFAESI Act, outlining its background, scope, applicability, and key features
    • It then explains the Enforcement of Security Interest, detailing creditor rights, demand notices, borrower representations, and possession of secured assets
    • A dedicated chapter covers the Procedure for Sale of Assets, including valuation, auction/e-auction, confirmation of sale, and issuance of sale certificates
    • The Guide also addresses Applications, Appeals, and Penalties, explaining remedies before the DRT and appeals to the DRAT
    • Separate chapters deal with Securitisation and Asset Reconstruction Companies (ARCs), covering the acquisition of financial assets and the regulatory framework for ARCs
    • The Guide concludes with Registration of Transactions under SARFAESI, explaining registration of security interests with the Central Registry (CERSAI)
  • Division Two – SARFAESI Act 2002
    • Contains the complete, updated text of the SARFAESI Act, 2002, preceded by an Arrangement of Sections and followed by a Subject Index for easy reference.
  • Division Three – Rules
    • Includes the Security Interest (Enforcement) Rules 2002, governing notices, possession, management, and sale of secured assets.
    • Also covers the SARFAESI (Central Registry) Rules 2011 and relevant provisions of the Tribunals Reforms Act 2021, as applicable to SARFAESI matters
  • Division Four – Circulars/Directions/Notifications/Orders
    • Compiles key RBI directions, Government notifications, and SARFAESI regulatory instruments, including ARC-focused directions, Removal of Difficulty Orders, and the RBI circular on disclosure of secured assets possessed
  • Division Five – Case Laws Digest under SARFAESI Act
    • Provides a dedicated digest of important judicial decisions interpreting the SARFAESI Act, applicable for enforcement and litigation support
• Book Two – Recovery of Debts and Bankruptcy Act 1993
  • Division Six – Guide to RDBA
    • Offers a practical guide to the Recovery of Debts and Bankruptcy Act 1993, covering filing of Original Applications, DRT procedure, DRAT appeals, recovery after orders, tribunal powers, limitation, and RBI directions on stressed assets
  • Division Seven – Recovery of Debts and Bankruptcy Act 1993
    • Contains the complete text of the Act, along with an Arrangement of Sections and a Subject Index
  • Division Eight – Rules
    • Includes the procedural and administrative rules governing DRT and DRAT proceedings, including the Electronic Filing Rules 2020
  • Division Nine – Notifications
    • Compiles relevant Government notifications issued under the Recovery of Debts and Bankruptcy Act
  • Division Ten – Case Laws Digest under RDBA
    • Concludes with a separate case-law digest under the Recovery of Debts and Bankruptcy Act, supporting tribunal practice and appellate work