Courts: Debt Recovery Tribunal (DRT)
Debt Recovery Tribunal (DRT) is a specialized tribunal established to adjudicate and recover debts due to banks and financial institutions. It handles loan recovery cases and enforcement of security interests under applicable banking and recovery laws.
The Debt Recovery Tribunal (DRT) was established to provide a faster and specialized mechanism for resolving disputes related to recovery of debts owed to banks and financial institutions. Instead of approaching civil courts, lenders can file applications before DRT for recovery of outstanding loans and enforcement of security interests.
DRTs primarily deal with claims involving recovery of debts above the statutory threshold prescribed under the Recovery of Debts and Bankruptcy Act, 1993. The tribunal examines evidence, determines the amount payable, and can issue recovery certificates that enable recovery proceedings against borrowers. The objective of creating DRTs is to ensure expeditious adjudication of loan recovery cases and reduce the burden on regular courts.
