What is DRT and When Does It Deal With Bank Recovery Matters?

The forum

Debts Recovery Tribunals (DRTs) were constituted under the Recovery of Debts and Bankruptcy Act, 1993 (originally the Recovery of Debts Due to Banks and Financial Institutions Act) to deal with applications by banks and financial institutions for recovery of debts above the prescribed threshold.

Two common routes into a DRT

1. Original Application by the lender — the bank or financial institution files for recovery of the debt. The borrower and guarantors are respondents.
2. Securitisation Application by the borrower — under Section 17 of the SARFAESI Act, a person aggrieved by measures taken under Section 13(4) may approach the DRT.

What typically happens

Pleadings are filed, interim applications may be moved, documents are marked, and the tribunal passes orders. A recovery certificate may be issued in recovery proceedings, which is then executed by a Recovery Officer.

Jurisdiction

Which DRT hears a matter generally depends on where the cause of action arises or where the branch or property is situated. This is one reason jurisdiction details are collected at intake on this platform.

Appeals

Orders of a DRT are appealable to the Debts Recovery Appellate Tribunal (DRAT), subject to the conditions prescribed by statute, including deposit requirements in certain cases.

General information only. This content is not a substitute for advice from a qualified advocate.