DRT

The Debt Recovery Tribunal (DRT) is a specialized tribunal in India that deals with the recovery of debts owed to banks and financial institutions. DRT ensures quick and effective resolution of debt disputes, helping lenders recover amounts due while protecting the rights of borrowers. Below is an overview of the typical stages involved in DRT proceedings:

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Filing of Application / Complaint:

The process begins when a bank or financial institution files an application in the DRT for recovery of dues under the Recovery of Debts and Bankruptcy Act, 1993.

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Notice to the Debtor:

The tribunal issues notice to the debtor, informing them of the claim and requiring a response within a specified timeframe.

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Debtor’s Response:

The debtor submits a written statement admitting, contesting, or providing explanations for non-payment, along with supporting evidence.

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Preliminary Hearing / Interim Orders:

The tribunal may conduct a preliminary hearing to fix dates for arguments, issue temporary injunctions, or direct the debtor to deposit part of the disputed amount.

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Evidence & Document Submission:

Both parties submit evidence, including loan agreements, notices, account statements, and supporting documents to substantiate their claims or defenses.

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Hearing & Arguments:

Detailed hearings are conducted where both sides present arguments, examine witnesses, and provide clarifications to the tribunal.

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DRT Order / Judgment:

After evaluating evidence and arguments, the tribunal delivers its order, which may include repayment schedules, attachment of assets, or other recovery measures.

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Appeals:

Aggrieved parties may appeal the DRT order to the Debt Recovery Appellate Tribunal (DRAT). Further appeals on substantial questions of law may be made to the Supreme Court of India.