Debt Recovery Tribunal (DRT)

The Debt Recovery Tribunal (DRT) was set up in 1993 to address the backlog of money recovery cases for banks. Both banks and defaulters can file applications in the DRT to resolve disputes. The tribunal’s powers are akin to those of a civil court, with the primary objective of providing a speedy resolution.

Are you concerned about recovering money owed to you by a bank or financial institution? The Debt Recovery Tribunal (DRT) may be the solution you’re looking for. Established to handle the recovery of debts due to banks and financial institutions, the DRT deals with cases involving amounts greater than ₹20 lakhs. This guide will explain the process, fees, and documents required for filing an application with the DRT.

Types of Applications Under the DRT

  • Original Application (OA)
  • Securitization Application (SA)
  • Interlocutory Application (IA)
  • Miscellaneous Application (MA)

Debt Recovery Appellate Tribunal (DRAT)

If a party is dissatisfied with the DRT’s decision, they can appeal to the Debt Recovery Appellate Tribunal (DRAT). However, DRAT requires the appellant to deposit 75% of the debt amount as determined by the DRT before entertaining the appeal.

Types of DRT (Debt Recovery Tribunal)

  • RDDBFI Act:The Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993, was established to create Tribunals for the swift adjudication and recovery of debts owed to banks and financial institutions. It also covers related or incidental matters.
  • SARFAESI Act:The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, regulates the securitization and reconstruction of financial assets and the enforcement of security interests, along with related or incidental matters.
  • A statement showing details of the debt due and circumstances under which it became due.
  • Any documents relied upon by the applicant.
  • Crossed Bank Draft or Indian Postal Order representing the application fee.
  • Index of documents to be produced.
The fees depend on the amount involved in the case. The tribunal levies a fixed percentage of the amount as the fee, which can be reduced by the tribunal’s order if necessary.
 
  • Filing the Application : Submit the Original Application (OA) to the DRT, including details of the debt and relevant case details.
  • Inspection of Application : The registrar inspects the application and assigns a serial number for tracking.
  • Summons to Respondent : The Presiding Officer issues a show-cause notice to the respondent.
  • Affidavit Submission : Both parties present their arguments and supporting documents in the form of affidavits to the tribunal. Final Order : The Presiding Officer examines all arguments and evidence, then issues a final order. If the judgment favors the bank, a Recovery Certificate is issued to the recovery officer. If it favours the borrower, the case is dismissed.
  • Final Order :The Presiding Officer examines all arguments and evidence, then issues a final order. If the judgment favors the bank, a Recovery Certificate is issued to the recovery officer. If it favours the borrower, the case is dismissed.
    Note: If either party is dissatisfied with the decision, they can appeal to the DRAT.
 

Branches of DRTs and DRATs

DRAT Chennai

  • DRT Chennai-1
  • DRT Chennai-2
  • DRT Chennai-3
  • DRT Bangluru-1
  • DRT Bangluru-2
  • DRT Coimbatore
  • DRT Ernakulam-1
  • DRT Ernakulam-2
  • DRT Madurai

DRAT Kolkata

  • DRT Kolkata-1
  • DRT Kolkata-2
  • DRT Kolkata-3
  • DRT Hyderabad-1
  • DRT Hyderabad-2
  • DRT Visakhapatnam
  • DRT Siliguri
  • DRT Cuttack
  • DRT Guwahati

DRAT Mumbai

  • DRT Mumbai-1
  • DRT Mumbai-2
  • DRT Mumbai-3
  • DRT Ahmedabad-1
  • DRT Ahmedabad-2
  • DRT Aurangabad
  • DRT Nagpur
  • DRT Pune

DRAT Delhi

  • DRT Delhi-1
  • DRT Delhi-2
  • DRT Delhi-3
  • DRT Chandigarh-1
  • DRT Chandigarh-2
  • DRT Chandigarh-3
  • DRT Jaipur

DRAT Allahabad

  • DRT Allahabad
  • DRT Dehradun
  • DRT Jabalpur
  • DRT Patna
  • DRT Ranchi
  • DRT Lucknow
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Frequently Asked Questions

What is the DRT?

The Debt Recovery Tribunal (DRT) is a specialized tribunal established to handle cases involving the recovery of debts owed to banks and financial institutions.

Original Application (OA), Securitization Application (SA), Interlocutory Application (IA), and Miscellaneous Application (MA).

There are 39 DRTs and 5 DRATs in India.

The Recovery of Debts Due to Banks and Financial Institutions Act, 1993, establishes tribunals for the speedy adjudication and recovery of debts due to banks and financial institutions.

The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, regulates the securitization and reconstruction of financial assets and enforcement of security interests.

A statement of debt details, relevant documents, application fee in the form of a Bank Draft or Indian Postal Order, and an index of documents.

Fees are a fixed percentage of the amount involved in the case and can be reduced by the tribunal if necessary.

File the OA, have it inspected by the registrar, obtain a serial number, have the Presiding Officer issue a summons, present arguments and documents, and receive a final order.

Yes, decisions can be appealed to the DRAT, provided the appellant deposits 75% of the debt amount as determined by the DRT.

The DRT helps reduce the burden on higher courts and provides a speedy resolution in debt recovery matters for banks and financial institutions.