DRT (Debt Recovery Tribunal)

RDDB Act, 1993 — Sections 3–8

A specialised quasi-judicial tribunal established under the Recovery of Debts and Bankruptcy Act, 1993 (RDDB Act) for the adjudication of claims by banks and financial institutions for recovery of debts above ₹20 lakhs. DRTs have jurisdiction over Original Applications filed by creditors, Section 17 SARFAESI challenges filed by borrowers, and applications related to the IBC.

In practice, the DRT is the engine room of institutional debt recovery in India, established under the RDDB Act, 1993 for claims by banks and financial institutions above the prescribed threshold. A creditor's matter usually begins here with an Original Application; separately, a borrower aggrieved by SARFAESI enforcement files a Section 17 challenge in the same tribunal, so the DRT often hears both sides of the same loan. Counsel must pick the right bench by territorial jurisdiction, plead the debt with documentary proof and a correctly computed claim, and move early for interim attachment to stop asset dissipation before the matter is heard on merits. The tribunal is meant to be faster than a civil court, but registry defects, mis-described parties, or an unstamped security document can stall an OA at the threshold. A favourable order ripens into a Recovery Certificate executable by the Recovery Officer. Well-advised creditors confirm jurisdiction, limitation, and the security chain before filing.