Welcome to the official blog of the Law Offices of Kr. Vivek Tanwar Advocate and Associates, where we are dedicated to providing litigation support services for matters related to debt Recovery. In today’s blog post, we aim to shed light on the prevailing issues surrounding Debt Recovery, the legal framework for their protection, and the steps we can take as a society to combat these acts. Join us as we explore this critical subject and empower you with the knowledge to protect your rights and safety.

Debt Recovery Tribunals (DRTs) in India play a pivotal role in the financial sector, expediting the recovery of unpaid debts owed to banks and financial institutions. Governed by the Recovery of Debts due to the Banks and Financial Institutions Act (RDBBFI), 1993, DRTs have become vital in addressing non-performing assets (NPAs) and streamlining debt recovery. Here’s a concise guide:

Filing a Case in DRT:

  1. Who Can File: Banks, financial institutions, and asset reconstruction companies (ARCs) can approach DRTs for debt recovery. Borrowers can also file cases to dispute claims or negotiate settlements.
  2. Reasons to File: Common reasons include loan defaults, disputes over recovery, or challenging debt validity.

Procedure for Filing a Case in DRT:

  1. Pre-filing: Lenders issue a demand notice to borrowers before filing. If ignored, they approach DRT.
  2. Drafting the Application: Lenders prepare a recovery application under Section 19 of the RDBBFI Act, including details of the borrower, debt amount, nature of debt, and supporting documents.
  3. Filing: The lender submits the application and prescribed fees to the relevant DRT. The DRT may notify the borrower.

Procedure After Filing:

  1. First Hearing: Both parties present their cases. Borrowers can contest the debt; lenders must prove the default.
  2. Evidence and Arguments: Subsequent hearings involve presenting evidence and legal arguments. A Recovery Officer may oversee recovery.
  3. Recovery Certificate: If satisfied, the DRT issues a Recovery Certificate, allowing the lender to enforce recovery, including asset sales.

Application Fee:

  • Each application must include the specified fee.
  • Pay via crossed-demand draft to the Registrar or at the Registrar’s office.
  • Alternatively, use a crossed Indian Postal Order in the Registrar’s name, payable at the Central Post Office of the Tribunal’s station.

Challenges and Issues:

  1. Delays: Backlogged cases lead to prolonged litigation.
  2. Overburdened System: High case volumes strain DRTs and infrastructure.
  3. Lack of Legal Awareness: Parties may lack awareness, causing procedural errors.

Appeals Against Recovery Officer:

Discontented parties can appeal to the Debt Recovery Appellate Tribunal (DRAT), a higher forum, to challenge Recovery Officer decisions.

Advantages of DRT:

  1. Specialized Forum: DRTs streamline debt recovery cases.
  2. Uniform Procedure: The RDBBFI Act establishes consistent procedures.
  3. Effective Enforcement: Recovery Certificates empower lenders to recover debts without delay.


DRTs are essential institutions in India’s financial landscape, facilitating debt recovery and addressing NPAs. Despite challenges, their specialized focus and procedural clarity make them crucial for lenders and borrowers seeking swift resolution. As India’s economy evolves, DRTs remain vital for financial stability and efficient lending.

We are a law firm in the name and style of Law Offices of Kr—Vivek Tanwar Advocate and Associates at Gurugram and Rewari. We provide litigation support services for matters related to the Debt Recovery Tribunals (DRT).

Written by Priyanka Goel.

One Reply to “Demystifying Debt Recovery Tribunals (DRT) in India: An Overview”

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