DRT Terms and Explanations
DRT Terms and Explanations
Below is a comprehensive glossary of terms related to the Debt Recovery Tribunal (DRT) in India, along with explanations:
1. Debt Recovery Tribunal (DRT):
- A specialized quasi-judicial body in India that handles cases related to the recovery of debts and loans.
2. Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act:
- Legislation empowering banks and financial institutions to take measures for recovering non-performing assets without court intervention.
3. Non-Performing Asset (NPA):
- A loan or advance for which interest or principal payment remains overdue for a specific period, usually 90 days.
4. Recovery Officer:
- An officer appointed by the DRT to execute orders for the recovery of debts.
5. Compromise Settlement:
- An agreement between the borrower and the lender to settle the outstanding debt through negotiated terms.
6. Attachment of Property:
- Seizure of the borrower’s assets as part of the recovery process.
7. Garnishee Order:
- An order directing a third party (usually an employer or a debtor of the borrower) to withhold payments due to the borrower for debt recovery.
8. Recovery Certificate:
- A certificate issued by the Recovery Officer specifying the amount due for recovery.
9. Deficiency Memo:
- A document issued by the Recovery Officer specifying the shortfall in the amount realized from the sale of secured assets.
10. Public Auction:
- The process of selling secured assets through public bidding to recover the outstanding debt.
11. Attachment Order:
- An order directing the attachment of specific properties of the borrower as part of the recovery process.
12. Compensation for Wrongful Attachment:
- Damages awarded to the borrower if it is proven that the attachment of property was done wrongfully.
13. Interim Order:
- A temporary order issued by the DRT before a final decision on the case.
14. Original Jurisdiction:
- The authority of the DRT to hear cases related to debt recovery as the first instance.
15. Rehabilitation and Restructuring:
- Measures to revive and reorganize the business of a defaulting borrower to facilitate debt repayment.
16. Appeal:
- The process of challenging a DRT decision before the Debt Recovery Appellate Tribunal (DRAT).
17. Stay Order:
- An order temporarily halting further legal proceedings.
18. Mortgage:
- A legal agreement where the borrower offers real property as security for a loan.
19. Jurisdictional DRT:
- The DRT having territorial jurisdiction over a specific area where the borrower or the property is located.
Understanding these terms is crucial for parties involved in DRT proceedings, ensuring clarity and compliance with the legal framework governing debt recovery in India.
Adcocate J.S. Rohilla (Civil & Criminal Lawyer in Indore)
Contact: 88271 22304
