Types of Cases Handled by DRT

Types of Cases Handled by DRT

Types of Cases Handled by the Debt Recovery Tribunal (DRT): A Lawyer’s Perspective

As a lawyer specializing in matters before the Debt Recovery Tribunal (DRT), I’ve witnessed a wide range of cases come through my doors. The DRT, established under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, plays a crucial role in facilitating swift and efficient debt recovery for banks and financial institutions.

Here’s a breakdown of the main types of cases handled by the DRT:

1. Recovery of Loans and Debts:

• This forms the core of DRT proceedings. Banks and financial institutions can approach the DRT for recovering outstanding loans exceeding ₹10 lakhs (as of 2023) against various borrowers, including:
  • Individuals
  • Companies
  • Societies
  • Trusts
• The types of loans covered by the DRT include:
  • Secured loans (e.g., mortgages, car loans)
  • Unsecured loans (e.g., personal loans, credit card dues)
  • Working capital loans
  • Agricultural loans

2. Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act Cases:

• Under the SARFAESI Act, 2002, banks and financial institutions can take possession of secured assets (e.g., mortgaged property) without resorting to court proceedings in case of loan defaults.
• However, borrowers can challenge such actions before the DRT, raising issues like:
  • Improper valuation of the secured asset
  • Non-compliance with SARFAESI procedures
  • Unfairness of the proposed sale of the asset

3. Miscellaneous Applications:

• The DRT also handles various miscellaneous applications related to debt recovery proceedings, such as:
  • Applications for setting aside ex parte orders (orders passed without hearing the borrower)
  • Applications for stay of recovery proceedings
  • Applications for appointment of receivers to manage the secured assets
  • Applications for condonation of delay in filing appeals

Navigating the DRT Landscape:

As a lawyer, I advise clients to approach DRT proceedings with a clear understanding of their rights and obligations. Seeking legal counsel early on is crucial, as the DRT has fast-paced procedures and strict timelines.

Remember, the DRT is a specialized tribunal with its own set of rules and procedures. Engaging a lawyer with expertise in DRT matters can significantly enhance your chances of a successful outcome.

Here are some additional points to consider:

• The DRT has a nationwide jurisdiction, with benches located in various cities across India.
• The DRT proceedings are generally less formal than regular court proceedings.
• The DRT aims for speedy disposal of cases, with timelines for each stage of the proceedings.
• Appeals against DRT orders can be filed with the Debt Recovery Appellate Tribunal (DRAT).

I hope this overview provides a basic understanding of the types of cases handled by the DRT. If you have any specific questions or require legal advice regarding a DRT matter, feel free to consult with a qualified lawyer specializing in this area.

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Adcocate J.S. Rohilla (Civil & Criminal Lawyer in Indore)

Contact: 88271 22304

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