What is Affidavit?
An Affidavit is a written statement of facts sworn to be true by the deponent before a notary, commissioner of oaths or other authorised officer. Affidavits are required for many SARFAESI, DRT and IBC pleadings, and false statements attract perjury under the Penal Code.
| Meaning | An Affidavit is a written statement of facts sworn to be true by the deponent before a notary, commissioner of oaths or other authorised officer. Affidavits are required for many SARFAESI, DRT and IBC pleadings, and false statements attract perjury under the Penal Code. |
|---|---|
| Category | Legal & Insolvency |
| Related Laws | Indian Oaths Act; CPC Order XIX; IPC Section 191 |
| Who Uses It | Litigants, advocates |
| Why It Matters | Sworn record of facts before tribunals. |
Affidavit explained in plain English
A practitioner's view written for borrowers and advisors — not a textbook definition.
An Affidavit is a written statement of facts sworn to be true by the deponent before a notary, commissioner of oaths or other authorised officer. Affidavits are required for many SARFAESI, DRT and IBC pleadings, and false statements attract perjury under the Penal Code.
In practice, Affidavit is used most often by litigants, advocates. Each of them sees the term from a slightly different angle: borrowers care about protection and outcomes, lenders care about classification and recovery, regulators care about consistency and disclosure.
The legal anchor for Affidavit is Indian Oaths Act; CPC Order XIX; IPC Section 191. RBI master directions, the SARFAESI Act 2002, the RDB Act 1993 and the IBC 2016 commonly interplay, depending on the loan size, security and stage of stress.
Why does it matter? Sworn record of facts before tribunals. For a stressed borrower, getting this concept right early often saves several months of penal interest, legal cost and credit-score damage.
A real example: Borrower files an affidavit in support of an application to set aside an auction. The mechanics may look complex, but the underlying logic — the bank wants closure, the borrower wants a fair outcome — is straightforward once the right framework is in place.
If you are facing a situation involving Affidavit, the safest first step is a structured case review with a senior ex-banker who has handled comparable matters across banks and ARCs in India.
Where you'll encounter Affidavit
Whenever a loan moves from "Standard" to "stressed", Affidavit is one of the words that starts appearing in notices, bank emails and lawyers' opinions.
Sanctioning committees, recovery teams and risk officers use Affidavit to classify accounts, decide provisioning and approve resolution paths.
Affidavit appears in pleadings, securitisation applications, OAs, Section 7/9 petitions and SARFAESI writs as part of the dispute record.
When stressed loans are sold to ARCs or special-situations investors, Affidavit is used in term sheets, assignment agreements and due-diligence reports.