What are the advantages of approaching the DRT for debt recovery?
What are the advantages of approaching the DRT for debt recovery?
Approaching the Debts Recovery Tribunal (DRT) for debt recovery offers several advantages for creditors seeking to recover outstanding dues from defaulting borrowers. Here are some of the key advantages:
- Specialized Forum: DRTs are specialized tribunals established exclusively for the adjudication of cases related to debt recovery. Their focused mandate and expertise in handling debt recovery disputes ensure that cases are heard by adjudicators with relevant experience and knowledge in banking and finance laws.
- Expeditious Resolution: DRTs are known for their streamlined procedures and expeditious resolution of cases. Compared to traditional civil courts, which may have extensive case backlogs and lengthy procedural delays, DRTs prioritize the speedy disposal of debt recovery cases, enabling creditors to obtain orders for recovery in a timely manner.
- Dedicated Focus on Debt Recovery: Unlike civil courts that handle a wide range of civil disputes, DRTs exclusively deal with cases pertaining to debt recovery. This dedicated focus allows DRTs to adopt specialized approaches and mechanisms tailored to the unique challenges and complexities of debt recovery proceedings.
- Effective Enforcement Mechanisms: DRTs have broad powers to enforce their orders for debt recovery. These powers include attachment and sale of the debtor’s properties, garnishment of wages or bank accounts, issuance of recovery certificates, and other measures to compel compliance with the tribunal’s directives.
- Protective Measures for Creditors: DRTs can grant interim relief or injunctions to protect the interests of creditors during the pendency of proceedings. This may include orders to restrain the debtor from disposing of assets or transferring properties, thereby safeguarding the creditor’s rights and ensuring effective recovery of dues.
- Legal Certainty and Finality: Orders passed by DRTs are legally binding and enforceable, providing creditors with a sense of legal certainty and finality in the debt recovery process. Once a recovery order is obtained from the DRT, creditors can proceed with enforcement measures without the risk of further litigation or challenges to the validity of the order.
- Cost-Effective Resolution: The streamlined procedures and focused approach of DRTs often result in cost-effective resolution of debt recovery disputes. Compared to protracted litigation in civil courts, which may entail substantial legal fees and expenses, pursuing debt recovery through DRTs can lead to more efficient and economical outcomes for creditors.
Overall, approaching the DRT for debt recovery offers creditors several advantages, including specialized expertise, expeditious resolution, effective enforcement mechanisms, and cost-effective outcomes. These advantages make DRTs a preferred forum for creditors seeking to recover outstanding debts owed to them by defaulting borrowers.
Disclaimer: This information is intended for general guidance only and does not constitute legal advice. Please consult with a qualified lawyer for personalized advice specific to your situation
Adcocate J.S. Rohilla (Civil & Criminal Lawyer in Indore)
Contact: 88271 22304
