How to File a DRT Case in India —
Complete Step-by-Step Guide 2026

1. What Is the Debt Recovery Tribunal?

The Debt Recovery Tribunal (DRT) is a specialised quasi-judicial body established under the Recovery of Debts and Bankruptcy Act, 1993 (RDDB Act) to provide a fast-track mechanism for banks and financial institutions to recover outstanding debts. DRTs were constituted following the recommendations of the Narasimham Committee (1991) which identified delayed debt recovery as a critical impediment to banking sector health.

There are currently 39 DRTs operating across India, each headed by a Presiding Officer of the rank of a District Judge. Appeals from DRT orders lie before the Debt Recovery Appellate Tribunal (DRAT), of which there are 5 across the country. The DRT has exclusive jurisdiction over debts of Rs.20 lakhs and above — civil courts have no jurisdiction to entertain such recovery proceedings once the DRT is established for that area.

The DRT's mandate under Section 17 of the RDDB Act is to adjudicate Original Applications filed by banks and financial institutions for recovery of debts due to them. The Tribunal also adjudicates appeals under Section 17 of the SARFAESI Act, 2002, where borrowers challenge securitisation and enforcement actions by secured creditors. This dual jurisdiction makes the DRT the central forum for all debt recovery and security enforcement litigation in India.

2. DRT Jurisdiction – Which Tribunal to Approach

Jurisdiction is the first question to resolve when filing a DRT case. The correct DRT is determined by the location where the defendant (borrower) resides or carries on business, or where the cause of action arises — typically where the branch that sanctioned the loan is situated. Filing in the wrong DRT results in dismissal and wasted months.

Section 19(1) of the RDDB Act governs territorial jurisdiction. The applicant bank may file the Original Application before the DRT within whose jurisdiction the defendant “actually and voluntarily resides, or carries on business, or personally works for gain.” Where there are multiple defendants in different jurisdictions, the applicant may choose the DRT within whose jurisdiction any one defendant resides or carries on business.

Pecuniary jurisdiction is straightforward: the DRT entertains claims of Rs.20 lakhs and above. There is no upper limit. Claims below Rs.20 lakhs must be filed in the competent civil court. However, if the original claim exceeded Rs.20 lakhs but the outstanding amount has reduced below this threshold due to part-payments, the DRT retains jurisdiction.

India's 39 DRTs are distributed across major cities including Delhi, Mumbai (3 benches), Chennai, Kolkata, Bangalore, Hyderabad, Ahmedabad, Pune, Jaipur, Chandigarh, Lucknow, Patna, Ernakulam, Cuttack, Guwahati, and others. Each DRT's territorial jurisdiction is notified by the Central Government. Before filing, verify the current jurisdictional notification — these have been revised multiple times.

3. Documents Required for Filing

A well-prepared Original Application with complete documentation is critical. Missing documents lead to deficiency notices from the DRT registry and delays of 2–4 weeks per round of correction. The following documents must accompany the OA:

• Loan Agreement and Sanction Letter: Original or certified copy of the loan/credit facility agreement, including all amendments and supplementary agreements.
• Security Documents: Mortgage deed, hypothecation agreement, pledge agreement, guarantee deed — all documents creating security interest over the borrower's assets.
• Personal Guarantee: If guarantors are being pursued, the original guarantee deed and any letter of continuity.
• Account Statements: Certified statement of account from the date of disbursement to the date of filing, showing all debits, credits, interest applications, and the final outstanding balance.
• NPA Classification Records: Internal records showing the date on which the account was classified as NPA, the RBI guidelines under which the classification was done, and the basis for classification (90-day norm or otherwise).
• Demand/Recall Notice: Copy of the notice recalling the credit facility and demanding repayment, along with proof of service (AD card, courier receipt, affidavit of service).
• Board Resolution / Authorisation: Resolution of the bank's board or competent authority authorising the filing of the OA, along with a power of attorney in favour of the authorised officer or advocate.
• Valuation Reports: Latest valuation of secured properties, if available — useful for interim attachment applications.

4. Step-by-Step Filing Procedure

The filing procedure for a DRT Original Application follows a structured sequence. Each step must be completed correctly to avoid registry objections. Here is the complete process:

Step 1 — Draft the Original Application: The OA must be in the prescribed Form I (Annexure to DRT Procedure Rules, 1993). It must state the cause of action, the amount claimed with breakup, the relief sought, and the basis of DRT jurisdiction. The plaint-equivalent must be drafted with the precision of a civil court plaint — vague or omnibus pleadings invite objections.

Step 2 — Compute Court Fees: Calculate the filing fee based on the claim amount. Fees are on a slab basis — Rs.12,000 for claims up to Rs.10 lakhs, plus Rs.1,000 for each additional Rs.1 lakh, maximum Rs.1,50,000. Pay by demand draft drawn in favour of the Registrar of the concerned DRT.

Step 3 — Prepare Affidavit: The OA must be supported by an affidavit of the authorised officer of the bank verifying the contents of the application and the correctness of the account statement. This affidavit must be sworn before a Notary or Oath Commissioner.

Step 4 — File at DRT Registry: Submit the OA in the prescribed number of copies (original + copies for each defendant). The registry will scrutinise the application for compliance with procedural requirements. If accepted, the OA is numbered and listed for admission.

Step 5 — Service of Summons: Upon admission, the DRT issues summons to all defendants. Service may be by registered post, courier, or through the DRT's process server. If ordinary service fails, the DRT may order substituted service by newspaper publication.

Step 6 — Defendant's Written Statement: The defendant must file a written statement within 30 days of service (extendable by the Presiding Officer). If no written statement is filed, the DRT may proceed ex parte.

5. Limitation Period for DRT Cases

The limitation period for filing a DRT Original Application is governed by the Limitation Act, 1963, as applicable to the DRT by virtue of Section 24 of the RDDB Act. The standard limitation period is three years from the date on which the cause of action arises — typically the date of NPA classification or the date of recall of the credit facility.

This is a critical timeline. Missing the limitation deadline means the entire claim becomes time-barred and unrecoverable through DRT proceedings. For term loans, the limitation runs separately for each instalment. For cash credit/overdraft facilities, the limitation runs from the date of final entry in the account or from the date of recall, whichever is later.

Acknowledgment of debt under Section 18 of the Limitation Act extends the limitation period. Part-payments, confirmation of balance, or any written acknowledgment by the borrower restarts the three-year clock from the date of acknowledgment. Banks routinely rely on balance confirmation letters and annual review documents to keep the limitation alive. OTS (One Time Settlement) correspondence, if it contains an acknowledgment of the outstanding amount, also extends limitation.

For SARFAESI proceedings, the limitation question is different. Section 13(2) notices and Section 13(4) enforcement actions have their own timelines. However, for DRT Original Applications filed as an alternative or supplement to SARFAESI enforcement, the standard three-year limitation applies. A Section 17 application by the borrower must be filed within 45 days of the Section 13(4) action.

6. Interim Relief and Attachment Orders

Interim relief is often the most critical phase of DRT proceedings. An attachment order under Section 19(12) prevents the borrower from alienating, transferring, or encumbering their assets during the pendency of the OA. Without interim protection, a determined borrower can render the eventual Recovery Certificate unenforceable by stripping assets.

The DRT may grant the following interim reliefs: (a) attachment of the defendant's movable and immovable properties; (b) injunction restraining the defendant from transferring, alienating, or dealing with specified assets; (c) appointment of a receiver; and (d) any other order the Presiding Officer deems necessary to protect the applicant's interests.

To obtain interim attachment, the applicant must demonstrate: (i) a prima facie case on merits; (ii) that the defendant is likely to alienate, remove, or dispose of their assets to defeat the claim; and (iii) that the balance of convenience favours attachment. A strong interim application — backed by valuation reports, property search records, and evidence of asset movement — significantly increases the probability of actual recovery.

7. Recovery Certificate and Execution

Upon adjudication, if the DRT rules in favour of the applicant, it issues a Recovery Certificate under Section 19(22) of the RDDB Act. The Recovery Certificate is executable as a decree of a civil court and is enforced by the Recovery Officer appointed under Section 20 of the Act. This is the culmination of the DRT process — converting a legal right into actual monetary recovery.

The Recovery Officer has extensive powers under Section 25: attachment and sale of movable and immovable properties, arrest and detention of the defendant, appointment of a receiver, and any other mode of recovery that a civil court can employ in execution of a decree. In practice, the most effective recovery methods are auction of attached immovable properties and garnishee orders on the defendant's bank accounts.

The Recovery Certificate includes the amount due, interest computation, and costs awarded. The Recovery Officer proceeds to execute by first issuing a demand notice to the judgment debtor, and upon default, attaching and selling properties. The sale is conducted through public auction with prescribed notice periods and reserve price requirements.

It is worth noting that obtaining the Recovery Certificate is not the end — execution requires equal strategic effort. A judgment debtor with no visible assets requires forensic investigation of asset trails, benami holdings, and related-party transfers. This is where experienced DRT practitioners add the most value — in the execution phase, not just the adjudication phase.

Frequently Asked Questions

Conclusion

Filing a DRT case requires meticulous preparation — from verifying jurisdiction and limitation to assembling a complete documentary record. The DRT system offers significant advantages over civil courts: specialised judges, faster timelines, powerful interim remedies, and enforceable Recovery Certificates. However, these advantages are only realised with experienced counsel who understands both the procedural requirements and the strategic dimensions of debt recovery litigation.

At Unified Chambers, Advocate Subodh Bajpai has appeared in 500+ DRT proceedings across India over 25+ years. Every DRT matter receives senior-partner attention from filing through execution.