Debt Recovery Appellate Tribunal (DRAT) is the appellate authority that hears appeals against orders passed by Debt Recovery Tribunals. It reviews decisions in debt recovery matters involving banks and financial institutions.
The DRAT upheld the DRT’s refusal to accept the settlement after finding that the bank had not complied with the final order directing refund to the auction purchaser. Both the borrower and the bank’s appeals were dismissed.
The Tribunal ruled that the bank followed Rule 8 of the SIE Rules by publishing the sale notice in two newspapers and serving it on the borrower. The auction conducted under SARFAESI was upheld.
The DRT Chennai allowed recovery of ₹25.40 lakh after finding that the borrower defaulted on repayment of an overdraft facility and failed to contest the case. The Tribunal relied on loan documents and certified statements of account.
The Tribunal applied the Supreme Court’s ruling that Section 11 of the SARFAESI Act provides a mandatory arbitration mechanism for disputes between banks or financial institutions involving unpaid dues.
DRAT Allahabad set aside the DRT order for not examining the borrower’s plea of non-service of Section 13 notice. The case was remanded for fresh adjudication after proper hearing.
The Appellate Tribunal upheld the DRT’s direction to deposit Rs. 20 lakhs, finding no infirmity in the interim order. The appeal was dismissed at the admission stage.
The Tribunal upheld conditional delay condonation, directing payment of ₹20 lakh as a prerequisite while temporarily deferring possession, reaffirming compliance with Tribunal-imposed conditions.
The appellate tribunal held that a legal representative cannot raise objections not taken by the deceased defendant. The order striking off the defence was upheld.
The Tribunal held that sale of property below the distress value fixed by the bank’s own valuer is impermissible under SARFAESI. The auction and all subsequent actions were set aside.
The Appellate Tribunal held that the issue of pre-deposit required examination by the DRT. The appeal was remanded with directions to consider statutory compliance.
