DRT

The Debt Recovery Tribunal (DRT) is a specialized judicial body established for speedy recovery of debts due to banks and financial institutions. It was constituted under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. DRT handles cases involving loan defaults and recovery of non-performing assets. The tribunal provides an efficient alternative to traditional civil courts. Proceedings before DRT are summary in nature to ensure faster disposal. It has jurisdiction over matters exceeding the prescribed monetary limit. Banks and financial institutions approach DRT for enforcement of recovery claims. Borrowers are given an opportunity to present their defense. DRT also deals with cases under the SARFAESI Act. Orders passed by DRT are legally binding and enforceable. Appeals against DRT orders lie before the Debt Recovery Appellate Tribunal. The tribunal helps reduce the burden on civil courts. It ensures timely recovery and financial discipline. Overall, DRT plays a crucial role in strengthening the banking and financial system.