Debt Recovery of Tribunal

About Debt Recovery Tribunals (DRTs):

• DRTs are specialized judicial bodies established under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (DRT Act).
• RTs play a crucial role in enforcing creditor rights and expediting debt recovery processes under Indian law.
• Types of Cases Handled:
  • Their primary mandate is to adjudicate and resolve disputes concerning debt recovery from banks, financial institutions, and other specified entities.
  • DRTs can take cases from banks for disputed loans above Rs 20 Lakh.
  • The Securitisation and Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002 (SARFAESI Act) provides access to banks and financial institutions covered under the Act for recovery of secured debts from the borrowers without the intervention of the Courts at the first stage.
  • Securitisation Appeals (SAs) can be filed with the DRTs by those aggrieved against action taken by secured creditors under the SARFAESI Act.
• The DRT has the following structure:
  • President: A judicial officer appointed by the central government who is qualified to be a District Judge.
  • Members: Administrative and technical members appointed by the central government
• Under section 22(2) of the Recovery of Debts Due To Banks And Financial Institutions Act, 1993, DRT has the following powers:
  • summoning and enforcing the attendance of any person and examining him on oath;
  • requiring the discovery and production of documents;
  • receiving evidence on affidavits;
  • issuing commissions for the examination of witnesses or documents;
  • reviewing its decisions;
  • dismissing an application for default or deciding it ex parte;
  • setting aside any order of dismissal of any application for default or any order passed by it ex parte;
  • any other matter which may be prescribed.
• Jurisdiction: Each DRT is established for a specified territorial jurisdiction, and its jurisdiction extends to cases involving the recovery of debts due to banks and financial institutions within that jurisdiction.
• Appeals and Enforcement: Parties aggrieved by DRT orders have the right to appeal against the decision before the Debts Recovery Appellate Tribunal (DRAT).
• At present, 39 DRTs and 5 DRATs are functioning across the country. Each DRT and DRAT are headed by a Presiding Officer and a Chairperson, respectively.

Q1: What are Tribunals in India?

Tribunals are judicial or quasi-judicial institutions established by law. They intend to provide a platform for faster adjudication as compared to traditional courts, as well as expertise on certain subject matters. It performs a number of functions, like adjudicating disputes, determining rights between contesting parties, making an administrative decision, reviewing an existing administrative decision, and so forth.

Source: FinMin calls for efficient oversight of DRT backlog