Debt Recovery Tribunals

DEBT RECOVERY TRIBUNALS
 DRTs are governed by provisions of the Recovery of Debt Due to Banks and Financial Institutions Act, 1993, also popularly
called as the RDB Act.
 DRTs are located across the country. Some cities have more than one Debt Recovery Tribunal located therein. New Delhi and Mumbai
have three benches in Debt Recovery Tribunal. Chennai and Kolkata have two benches Debt Recovery Tribunal each. One Debt
Recovery Tribunal each has been constituted at Ahmedabad, Allahabad, Aurangabad, Bangalore, Chandigarh, Coimbatore, Cuttack,
Ernakulam, Guwahati, Hyderabad, Jabalpur, Jaipur, Lucknow, Nagpur, Patna, Pune, Ranchi and Vishakapatnam.
 Each Debt Recovery Tribunal is presided over by a Presiding Officer. The Presiding Officer is generally a judge of the rank of
Dist. & Sessions Judge.
 A Presiding Officer of a Debt Recovery Tribunal is assisted by a number of officers of other ranks, but none of them need necessarily
have a judicial back ground. Therefore, the Presiding Officer of a Debt Recovery Tribunal is the sole judicial authority to hear and pass
any judicial order.
 Each Debt Recovery Tribunal has two Recovery Officers. The work amongst the Recovery Officers is allocated by the
Presiding Officer. Though a Recovery Officer need not be a judicial Officer, but the orders passed by a Recovery Officer are
judicial in nature, and are appealable before the Presiding Officer of the Tribunal.
 DRTs are fully empowered to pass comprehensive orders like in Civil Courts. The Tribunal can hear cross suits, counter
claims and allow set offs. However, they cannot hear claims of damages or deficiency of services or breach of contract or
criminal negligence on the part of the lenders.
 DRTs can appoint Receivers, Commissioners, pass ex-parte orders, ad-interim orders, interim orders apart from powers to Review its own
decision and hear appeals against orders passed by the Recovery Officers of the Tribunal.
 Recording of evidence by Debt Recovery Tribunal is some what unique. All evidences are taken by way of an affidavit. Cross examination
is allowed only on request by the defense and that too if the Tribunal feels that such a cross examination is in the interest of justice.
Frivolous cross examination may be denied.
 DRTs are special types of courts for effecting recovery of dues of banks and financial institutions.
 DRTs are established under the Recovery of Debts due to banks and financial institutions Act 1993
 The Act is not applicable to J&K.
 DRT is headed by a Presiding Officer. He is assisted by a Recovery Officer and one Registrar.
 Type of Cases: Cases involving recoverable dues of banks and Fls of Rs 10 lees and above only are filed with DRTs. Such
cases can not be filed in the normal civil courts.
 Once the case is decided in favour of the bank or FI, the DRT issues a Recovery Certificate. Recovery Officer who has powers such
as attachment etc. helps in recovery of dues through execution of the decree passed by DRT.
 Appeal against the order of the Recovery Officer can be made to DRT within 30 days of passing the order.
 Any appeal against the judgement of DRT can be preferred with Debt Recovery Appellate Tribunal. The head of DRAT is called
Chairperson. The appeal is made within 45 days of the date of receipt of the order.
 If borrower wants to appeal, 75% of the judgment amount is required to be deposited which can be waived or reduced
by the Chairperson of the DRAT even to nil.
 Fee: for filing case with DRT- up to Rs 10 lac : Rs 12,000; For each additional Rs 1 lac or part thereof it is
 Rs 1000. Maximum amount of fees is Rs 1,50,000.
 For filing appeal with DRAT- Where the amount of debt is less than Rs 10 lakh- Rs 12,000;
 For debts due between Rs 10 lakh to less than Rs 30 lakh- Rs 20,000;
 For debts of Rs 30 lakh and more — Rs 30,000
 For being appointed as DRT, a person should qualify to be District Judge and for being appointed as DRAT, the person
should qualify to be a Judge of the High Court.