DRT & Recovery Suit

About Atharva Legal Lex

The Debt Recovery Tribunal (DRT) and the Recovery Officer play crucial roles in the recovery of debts due to banks and financial institutions under the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) (formerly the RDDBFI Act). Here's a breakdown of their roles and responsibilities in the context of DRT and Recovery Suit:

DRT & Recovery Suits

Adjudication of Recovery Applications (OAs)

Hear cases filed by banks/FIs for recovery of debts.

Pass orders and issue recovery certificates.

Handling Securitisation Applications (SAs)

Hear applications under Section 17 of the SARFAESI Act against measures taken by lenders.

Summoning and Examination

Issue summons to the defendant.

Examine witnesses, documents, and evidence.

Passing Recovery Certificate

After determining liability, issue a Recovery Certificate (RC) to be executed by the Recovery Officer

Expeditious Disposal

Dispose of cases within 180 days, though delays are common.

Appeals to DRAT

Allow appeals to the Debt Recovery Appellate Tribunal (DRAT) against DRT orders.

Recovery Suit Process

Bank/FI files Original Application (OA) in DRT.

DRT issues notice to the borrower/defendant.

Hearings and Evidence are conducted.

Final Order + Recovery Certificate is issued.

Recovery Officer takes over and initiates recovery steps.

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