Debt Recovery Tribunal (DRT)

The Debt Recovery Tribunal (DRT) was established to ensure fast and efficient recovery of debts due to banks and financial institutions. Under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, the DRT plays a crucial role in minimizing delays and providing specialized mechanisms for financial dispute resolution.

The primary objective of DRT is to empower banks and lenders to recover their non-performing assets without the need for prolonged civil litigation. It provides a streamlined process where cases related to debt recovery above a certain threshold are filed directly before the tribunal rather than the civil court.

• Handles cases of loan defaults, mortgage disputes, and non-repayment of secured loans.
• DRT orders have the same authority as civil court decrees.
• Borrowers and lenders can both present evidence and arguments for fair adjudication.
• Appeals from DRT decisions are heard by the Debt Recovery Appellate Tribunal (DRAT).

By reducing the backlog in civil courts and focusing specifically on financial disputes, DRT has become a key institution in maintaining financial discipline and stability in India’s banking sector.