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What is Debit Recovery Tribunal

Banks and financial institutions were facing a very strange problem of recovering loans which they have given to any individual or business organizations. Because of this reason, the banks and financial institutions has been restraining themselves from giving out any loans. This situation called for an effective system to recover the loaned money from the borrowers. This concern gave rise to the establishment of Debt Recovery Tribunals (DRTs).


Importance of DRT

The primary goal and function of DRT is the recovery of loaned money from borrowers which is owed to banks and financial institutions from customers. The power of the tribunal is restricted to settling down the cases concerning the recovery of the due amount from non-performing assets as affirmed by the banks as per the RBI guidelines.


The Tribunal has the powers bestowed with the District Court. The Tribunal has a Recovery officer who would be guiding towards executing the recovery Certificates as passed through the Presiding Officers.


Key Factors

The working of the tribunal is similar to a court. The borrower who is aggrieved by the order to the DRT can approach the Appellate Tribunal. Such appeal should be made within 45 days of receiving the orders of the DRT. He has to deposit 75 % of the amount which is due from him to the Bank or financial institution while filing his appeal. The Appellate Tribunal has got the powers to reduce or waive this amount.


The leading issue related with debt recovery through DRTs is the slow process of resolution (settling debts and finding end to defaults). We provide complete assistance and help recover at a faster phase.


There are many delicate points involved related to DRT. For example, using forged documents, if someone pledges your land / property to get loan and then defaults on the same, then the tribunal has the rights to acquire your property. In such cases, we provide the right consultation to protect your property.