The Artha Rin Adalat Ain, 2003 (Money Loan Court Act, 2003) is the primary legal instrument dealing with bank and non - bank financial institutions’ (NBFI) loan defaulters, which prescribes mechanisms for the banks and financial institutions (FIs) to get reimbursed.

The Act provides for the establishment of a separate court for dealing with money loan cases, which can only be filed by a bank or an NBFI.

The Act obliges the banks and NBFIs to auction the mortgaged property before approaching the Money Loan Court and empowers the Court to give ex parte decrees (by hearing only one party) provided that summons have been duly served.