How to file stay application in DRT?
How to file stay application in DRT?
To file a stay application in the Debt Recovery Tribunal (DRT), you must first draft an application stating the grounds on which you are seeking the stay. The application must be accompanied by a supporting affidavit and any other relevant documentation.
Once the application is drafted, you must file it with the Registrar of the DRT. The Registrar will then list the application for hearing before the Presiding Officer.
At the hearing, you will need to present your arguments in favor of granting the stay. The Presiding Officer will hear your arguments and the arguments of the other party, and then decide whether or not to grant the stay.
Here are some of the grounds on which you may seek a stay in the DRT:
- You have made a substantial payment towards the debt.
- You have filed an appeal against the DRT’s order.
- You have filed a petition for review of the DRT’s order.
- You are in negotiations with the creditor to settle the debt.
- You are facing financial hardship and are unable to repay the debt at the present time.
If you are successful in your application, the DRT will stay the proceedings until the matter is resolved.
Here are the steps to file a stay application in the DRT:
- Draft an application stating the grounds on which you are seeking the stay. The application must be accompanied by a supporting affidavit and any other relevant documentation.
- File the application with the Registrar of the DRT.
- Pay the prescribed filing fee.
- The Registrar will then list the application for hearing before the Presiding Officer.
- Attend the hearing and present your arguments in favor of granting the stay.
- The Presiding Officer will hear your arguments and the arguments of the other party, and then decide whether or not to grant the stay.
Filing a stay application in the Debt Recovery Tribunal (DRT) is a legal process that allows you to seek a stay order on actions taken by a bank or financial institution under the SARFAESI Act, 2002. Here’s a detailed guide on how to file a stay application in DRT:
- Consult with a Legal Expert:
Before initiating the process, it is advisable to consult with a legal expert who specializes in debt recovery and SARFAESI matters. They can provide guidance and help you prepare a strong case.
- Obtain a Certified Copy of Possession Notice:
Ensure you have a certified copy of the possession notice issued by the bank. This is a crucial document that you’ll need to submit with your stay application.
- Draft a Stay Application:
With the assistance of your legal expert, draft a stay application. This application should clearly state the reasons for seeking a stay order and provide supporting evidence. It typically includes: a. Your personal details and the details of the bank or financial institution.
b. The grounds on which you are seeking a stay order, such as irregularities in the possession notice, a dispute regarding the outstanding dues, or any violation of the SARFAESI Act.
c. A prayer requesting the DRT to grant a stay order on the possession.
- Attach Supporting Documents:
Gather all relevant documents that support your case. This may include loan agreements, correspondence with the bank, financial statements, and any evidence that challenges the bank’s actions.
- Pay the Requisite Fees:
DRTs typically require the payment of a prescribed fee for filing applications. Ensure that you pay this fee, and obtain a receipt as proof of payment.
- Submit the Application to the DRT:
Visit the DRT where your case is being heard and submit the stay application along with all the supporting documents. The DRT will provide a date for the hearing of your application.
- Serve Notice to the Opposite Party:
As per legal procedures, the DRT will also issue a notice to the opposite party (the bank or financial institution) informing them about your stay application and the date of the hearing. They will have the opportunity to respond to your application.
- Attend the Hearing:
On the designated hearing date, you and your legal representative should be present at the DRT. Be prepared to present your case, and your legal expert can argue on your behalf.
- DRT’s Decision:
After hearing both sides, the DRT will make a decision on whether to grant or deny the stay order. The decision may be based on the merits of your case, so it’s important to present a strong argument.
- Comply with the DRT’s Order:
If the DRT grants a stay order, ensure that you comply with its terms. If the stay order is in your favor, the bank will be restrained from taking further action until the matter is resolved.
- Follow Up on the Main Case:
It’s important to continue with the main case in the DRT, which addresses the underlying issues related to the loan default and recovery. The stay order is typically a temporary measure to protect your interests while the main case is ongoing.
Filing a stay application in DRT is a legal process, and it’s crucial to follow the procedure diligently and seek legal advice throughout to maximize your chances of success. If you are unsure of how to draft a stay application, you should consult with an experienced DRT lawyer in Indore.
Adcocate J.S. Rohilla (Civil & Criminal Lawyer in Indore)
Contact: 88271 22304