⚖️ DRT – Debt Recovery Tribunal
DRT stands for Debt Recovery Tribunal, a specialized tribunal in India that deals with cases related to recovery of debts due to banks and financial institutions.
🏛️ Purpose of DRT
The primary objective of DRT is to expedite the recovery of debts of ₹10 lakhs or more by banks and financial institutions under a streamlined process.
📜 Governing Law
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The Recovery of Debts and Bankruptcy Act, 1993 (RDB Act)
(formerly known as RDDBFI Act) -
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)
👨⚖️ Who Can File in DRT?
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Only banks and financial institutions can initiate proceedings in DRT.
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Borrowers/guarantors can also approach DRT to challenge bank actions (e.g., under Section 17 of the SARFAESI Act).
🧾 Key Features
| Feature | Details |
|---|---|
| Jurisdiction | For debts of ₹10 lakh or more |
| Who can file? | Banks, Financial Institutions |
| Reliefs sought | Recovery of loan, possession of secured assets, etc. |
| Right to appeal | Appeal lies to DRAT (Debt Recovery Appellate Tribunal) |
| Time-bound process | Tribunals aim to dispose of cases in 6 months |
| Execution | DRT can execute its own orders like a civil court |
🧑💼 Common Proceedings
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Original Application (OA) – Filed by banks for recovery
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Appeals against SARFAESI measures – Filed by borrowers under Section 17
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Interim applications – For stay or injunction
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Appeal to DRAT – Within 30 days of DRT's order (subject to deposit)
📌 Important Sections under DRT Law
| Section | Description |
|---|---|
| Sec 19 | Filing of Original Application (OA) by bank/FI |
| Sec 17 of SARFAESI | Remedy for borrower to challenge possession/action of bank |
| Sec 20 | Appeal to DRAT (Debt Recovery Appellate Tribunal) |
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