Debt Recovery Tribunal is a

quasi-judicial A quasi-judicial body is a non-judicial body which can interpret law. It is an entity such as an arbitration panel or tribunal board, which can be a public administrative agency (not part of the judicial branch of government) but also a contra ...

body formed under the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993 to facilitate recovery of

loan In finance, a loan is the tender of money by one party to another with an agreement to pay it back. The recipient, or borrower, incurs a debt and is usually required to pay interest for the use of the money. The document evidencing the deb ...

s by

bank A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...

s and

financial institution A financial institution, sometimes called a banking institution, is a business entity that provides service as an intermediary for different types of financial monetary transactions. Broadly speaking, there are three major types of financial ins ...

s to the customers. Orders of the Debt Recovery Tribunal are appealable before the Debts Recovery Appellate Tribunal.

Government of India The Government of India (ISO 15919, ISO: Bhārata Sarakāra, legally the Union Government or Union of India or the Central Government) is the national authority of the Republic of India, located in South Asia, consisting of States and union t ...

selects the presiding officer in the Tribunal. The Tribunal is based on Debt Recovery Tribunals Act for a debt which is more than Rs 20,00,000. The Jurisdiction extends to whole of India except to the state of

Jammu and Kashmir Jammu and Kashmir may refer to: * Jammu and Kashmir (union territory), a region administered by India as a union territory since 2019 * Jammu and Kashmir (state), a region administered by India as a state from 1952 to 2019 * Jammu and Kashmir (prin ...

History and objective

Debts Recovery Tribunals (DRTs) were formed under Banks and Financial Institutions (RDDBFI) Act, 1993 to facilitate debt recoveries by banks and financial institutions and to design an effective mechanism to recover their dues speedily without being subjected lengthy process of civil courts. The objective of Debt Recovery Tribunal is to ensure recovery of borrowed money from debtors which are due to banks and various financial institutions. Their role is limited to settling the claims and ensure the balance amount related to non-performing assets as categorised by the banks as per the provisions of RBI guidelines are recovered.

Powers

Debt Recovery Tribunal has powers of District Court for any claims before it relating to recovery of Debts. The Recovery officer in the tribunal is responsible to execute the recovery orders sanctioned by the Presiding Officers. DRT is bound to follow the legal procedure by laying emphasis on quick disposal of the cases and efficient and effective disposal of orders.

Composition

Debt Recovery Tribunal consists of Presiding and Recovery officers.

Application

Debt Recovery Tribunal is applicable for below cases The Debt Recovery Tribunal Act is applicable in entire India including Jammu & Kashmir after article 370 of the constitution has been made ineffective. The act is applicable for due amount above Rs. 20, 00,000. The act is also applicable even if the preliminary application for Debts recovery had been filed only by Banks and the Financial Institutions.

Places

Debt recovery tribunals are set up in 39 places and The debt recovery appellate tribunals are based in 5 places, in India, they are; Mumbai, Delhi, Kolkata,

Allahabad Prayagraj (, ; ISO 15919, ISO: ), formerly and colloquially known as Allahabad, is a metropolis in the Indian state of Uttar Pradesh.The other five cities were: Agra, Kanpur, Kanpur (Cawnpore), Lucknow, Meerut, and Varanasi, Varanasi (Benar ...

, and Chennai .

Challenges

Debt Recovery Tribunal faces understaffing challenges with most positions not being filled up in time.

References

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External links

Official Website
Government agencies of India Indian tribunals