During 1980s-90s, the banks in India did not have access to any specialised mechanism to recover the dues from the borrowers. In 1981, the Tiwari Committee examined the legal and other difficulties faced by banks and financial institutions (FI) and suggested the setting up of special tribunals for recovery of dues of banks and financial institution. Consequently in 1993, the Recovery of Debts due to Banks and Financial Institutions Act (RDDBFI Act), 1993 was enacted to establish the Debt Recovery Tribunal across the length and breadth of the country. Currently there are 39 DRTs and 5 DRATs operational in the country.
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The objective of Debt Recovery Tribunal (DRT) is expeditious adjudication and recovery of debts due to banks and FIs.
The minimum amount due to banks and FIs should be greater than 20 lac rupees.
It consists of one person only who is referred as Presiding officer. The Presiding officer:
To assist the Presiding officer, the government can appoint the recovery officers as deemed fit.
A person/entity aggrieved by orders of the DRT can appeal against its orders to Debt Recovery Appellate Tribunal (DRAT). The appeal must be made within 45 days of receiving the orders from DRT. The DRAT shall not entertain the appeal until such person deposits the 75% of amount of debt so due determined by the DRT. Both DRT and DRAT works on the principle of natural justice and have same powers as vested in any civil court.
It consists of one person only who is referred as Chairperson of Appellate Tribunal. The Chairperson:
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Tags: debt recovery tribunal, drt act, debts recovery tribunal, debt recovery tribunal act, debt recovery appellate tribunal, recovery of debts due to banks and financial institutions act, bank drt, rddbfi act
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