By S&S Co. Advocates & Solicitors · Published 20 September 2026 · Informational content, not legal advice — see our disclaimer
What a Section 13(2) Notice Actually Is
A notice under Section 13(2) of the SARFAESI Act, 2002 is a secured creditor's formal demand, issued once a borrower's loan account is classified as a non-performing asset, requiring the borrower to discharge their full liability within 60 days of the notice. It is the mandatory first step before a bank or NBFC can take any further enforcement action against secured assets — a lender cannot proceed to actual possession or sale of the security without first issuing this notice and allowing the 60-day period to run.
What the Notice Must Contain, and the 60-Day Window
The notice must specify the amount claimed as due, and identify the secured assets the creditor intends to enforce against if the amount is not paid within 60 days. Borrowers should read the notice carefully to confirm the claimed amount matches their own understanding of the outstanding balance, since a materially incorrect demand figure can itself be a ground to challenge the notice.
Filing a Representation or Objection
Under Section 13(3-A), a borrower who receives a Section 13(2) notice has the right to make a representation or raise objections to the secured creditor within the 60-day period, and the creditor is statutorily required to consider that representation and communicate, in writing, the reasons for not accepting it (if it is rejected) within 15 days of receipt. A creditor's failure to properly consider and respond to a genuine representation can itself be raised as a procedural defect in later proceedings.
What Happens If the 60 Days Pass Without Payment
If the borrower fails to discharge the liability within the 60-day period, the secured creditor can proceed to take further enforcement measures under Section 13(4), including taking possession of the secured asset. Once the creditor has actually taken a measure under Section 13(4), the borrower's remedy shifts from representation under Section 13(3-A) to filing a securitisation application before the Debt Recovery Tribunal (DRT) under Section 17 of the Act, challenging the measure taken.
Practical Steps for a Borrower
On receiving a Section 13(2) notice, a borrower should: verify the claimed amount against their own loan statement, engage promptly rather than waiting out the 60-day window, consider a genuine settlement or restructuring discussion with the lender if the default is real but resolvable, and file a written representation under Section 13(3-A) if there are genuine grounds to dispute the notice — since a representation properly made and responded to builds the record needed for any later DRT challenge.
Frequently Asked Questions
How long do I have to respond to a Section 13(2) notice?
60 days from the date of the notice, before the secured creditor can take further enforcement measures such as taking possession of the secured asset under Section 13(4).
Can I object to the amount claimed in the notice?
Yes. Under Section 13(3-A), a borrower can make a representation or raise objections within the 60-day period, and the creditor must consider it and communicate reasons in writing, within 15 days, if it is rejected.
What if the bank takes possession of my property despite my objection?
Once the creditor has taken a measure under Section 13(4), your remedy shifts to filing a securitisation application before the Debt Recovery Tribunal (DRT) under Section 17 of the SARFAESI Act, challenging that specific measure.
References & Further Reading
This article references the following statutory provisions. Readers should always verify current rules, fees and timelines against the applicable statute and rules as amended, since these are revised from time to time.
- Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), Sections 13(2), 13(3-A), 13(4) and 17.