DRAT (Debt Recovery Appellate Tribunal)

RDDB Act, 1993 — Section 20

The appellate forum for orders passed by the Debt Recovery Tribunal (DRT). An appeal to DRAT must be filed within 30 days of the DRT order. A pre-deposit of 50% of the debt amount is mandatory for borrowers who wish to appeal (this threshold may be reduced by the DRAT for good cause). DRAT orders are challenged before the High Court.

In practice, the DRAT is where a borrower or guarderor who has lost before the DRT goes next, and the appeal must be filed within 30 days of the DRT order under Section 20 of the RDDB Act. The decisive obstacle is the pre-deposit: a borrower appealing is ordinarily required to deposit 50% of the debt determined, which the DRAT may reduce for recorded reasons but rarely waives entirely. This single requirement disciplines frivolous appeals and is the first point counsel must plan around, because failing to deposit on time can see the appeal dismissed without a hearing on merits. For the secured creditor, the pre-deposit converts an appeal into a partial recovery even before the appeal is decided. DRAT orders are challenged onward before the High Court under writ jurisdiction. Borrowers who miscalculate the deposit, or assume the limitation clock can be stretched, lose the forum altogether, so well-advised parties fix the appealable amount and the deposit before filing.