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The Recovery of Debts and Bankruptcy Act, 1993 (RDDB Act) is the foundational legislation governing the Debt Recovery Tribunal (DRT) system in India. It established the DRT as a specialised quasi-judicial forum for expedited recovery of debts above ₹20 lakhs by banks and notified financial institutions.
Unified Chambers and Associates, led by Advocate Subodh Bajpai, specialises in DRT proceedings under the RDDB Act before all 39 DRTs and 5 DRATs across India.
Central Government notifies the establishment of Debt Recovery Tribunals at specified locations, with jurisdiction over specified territories.
Debt Recovery Appellate Tribunals established to hear appeals against DRT orders. Currently 5 DRATs — Delhi, Mumbai, Chennai, Kolkata, Allahabad.
DRT has jurisdiction to entertain applications from banks and financial institutions for recovery of debts. Jurisdiction is territorial — based on defendant's residence or business location.
The core provision. Banks/FIs may apply to DRT for recovery of debt. Sub-section (7) — interim attachment. Sub-section (19) — ex-parte orders. Sub-section (21) — Recovery Certificate.
Any person aggrieved by DRT order may appeal to DRAT within 30 days. Defendant must deposit 75% of the DRT award (unless waived) before DRAT can entertain the appeal.
Recovery Officer empowered to attach and sell moveable/immovable property, arrest debtor, appoint receivers, and take all steps necessary to execute the Recovery Certificate.
Recovery of debt by DRT has priority over all other debts — except debts due to the Central Government or State Government by way of revenue, cesses, and taxes.
No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the DRT or DRAT is empowered to determine. Injunctions against DRT proceedings by civil courts are barred.
Confirm the applicant is a bank or notified financial institution and the debt exceeds ₹20 lakhs. Non-bank entities cannot use this route.
File before the DRT having jurisdiction over the area where the defendant resides, carries on business, or where the cause of action arose. Wrong jurisdiction is a fatal defect.
Draft the Original Application with full particulars of debt, borrower, guarantors, security, demand notice, repayment history, and detailed prayer clause.
Simultaneously file for ex-parte interim attachment of debtor's assets. Must show prima facie case and reasonable apprehension of asset alienation.
File O.A. with prescribed court fee. Fee is calculated on the debt amount. File in triplicate with all supporting documents.
DRT issues summons to defendant. In case of difficulty, DRT can direct service by speed post, affixation, or newspaper publication.
Defendant files written statement within 30 days. Frivolous defences not entertained. DRT can proceed ex-parte if defendant fails to appear.
After hearing, DRT passes final order. Recovery Certificate issued for the amount found due. RC forwarded to Recovery Officer for execution.
The Recovery of Debts and Bankruptcy Act, 1993 (formerly the Recovery of Debts Due to Banks and Financial Institutions Act, 1993) is the legislation that established the Debt Recovery Tribunal (DRT) system in India. It provides an expedited mechanism for banks and notified financial institutions to recover debts above ₹20 lakhs through DRT proceedings, bypassing the slower civil court route.
Only banks (as defined under the Banking Regulation Act, 1949) and notified financial institutions (such as NBFCs notified by the Central Government, SIDBI, NABARD, NHB, EXIM Bank, etc.) are eligible to file Original Applications before the DRT under the RDDB Act. Individual creditors, companies, and other entities not falling within this definition must use civil courts, arbitration, or IBC.
An Original Application is the primary legal proceeding filed by a bank or financial institution before the DRT for recovery of a debt above ₹20 lakhs. It is filed under Section 19 of the RDDB Act and must contain details of the debt, the debtor, the security, the demand notice, and prayers for recovery, interest, costs, and interim relief.
Section 19(7) of the RDDB Act empowers the DRT to grant ex-parte interim orders of attachment against the defendant's properties before service of summons, if satisfied that the defendant may alienate or conceal assets. This is an extremely powerful tool to freeze assets at the very first hearing, before the defendant even knows the case has been filed.
Upon passing a final order in favour of the bank, the DRT issues a Recovery Certificate specifying the amount to be recovered. The RC is forwarded to the Recovery Officer, who proceeds to attach and auction the debtor's properties, collect the proceeds, and remit them to the bank. The Recovery Officer has powers equivalent to a civil court decree-holder for enforcement.
Related Legal Resources
Advocate Subodh Bajpai · Unified Chambers and Associates · All 39 DRTs