Debt Recovery Tribunals

Debt Recovery Tribunals Latest News

The Department of Financial Services (DFS) convened a colloquium of Chairpersons of Debt Recovery Appellate Tribunals and Presiding Officers of Debt Recovery Tribunals (DRTs) in New Delhi.

About Debt Recovery Tribunals

• DRTs are quasi-judicial bodies established under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.
• Role: Their primary role is adjudicating debt recovery disputes related to banks and financial institutions.
• DRTs handle loan default cases above ₹20 lakh, focusing on secured debts.
• DRTs also hear Securitisation Applications (SAs) filed under the SARFAESI Act, 2002 by borrowers or aggrieved parties.
• There are currently 39 DRTs functioning across India, each headed by a Presiding Officer.
• Composition
  • A DRT is presided over by a judicial officer qualified to be a District Judge.
  • It can also have administrative and technical members appointed by the Central Government.

‹ ›

Powers of DRTs

• Summon and examine witnesses,
• Compel the production of documents,
• Receive evidence on affidavits,
• Review or dismiss applications,
• Conduct ex parte proceedings,
• Issue commissions for document and witness examination.
• Jurisdiction of DRTs: Each DRT has a territorial jurisdiction defined by the Central Government.
• Jurisdiction is limited to cases involving debt recovery by banks and financial institutions.

Source: News On Air