Debt Recovery Tribunal is a

quasi-judicial A quasi-judicial body is non-judicial body which can interpret law. It is an entity such as an arbitration panel or tribunal board, that can be a public administrative agency but also a contract- or private law entity, which has been ...

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

loans In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that d ...

banks A bank is a financial institution that accepts 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 markets. Because ...

and

financial institutions Financial institutions, sometimes called banking institutions, are business entities that provide services as intermediaries for different types of financial monetary transactions. Broadly speaking, there are three major types of financial inst ...

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: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, ...

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 India, officially the Republic of India ( Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the ...

except to the state of Jammu and Kashmir.

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 Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the secon ...

Delhi Delhi, officially the National Capital Territory (NCT) of Delhi, is a city and a union territory of India containing New Delhi, the capital of India. Straddling the Yamuna river, primarily its western or right bank, Delhi shares borders wi ...

Kolkata Kolkata (, or , ; also known as Calcutta , List of renamed places in India#West Bengal, the official name until 2001) is the Capital city, capital of the Indian States and union territories of India, state of West Bengal, on the eastern ba ...

Allahabad Allahabad (), officially known as Prayagraj, also known as Ilahabad, is a metropolis in the Indian state of Uttar Pradesh.The other five cities were: Agra, Kanpur (Cawnpore), Lucknow, Meerut, and Varanasi (Benares). It is the admin ...

, and

Chennai Chennai (, ), formerly known as Madras ( the official name until 1996), is the capital city of Tamil Nadu, the southernmost Indian state. The largest city of the state in area and population, Chennai is located on the Coromandel Coast of ...

Challenges

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

Tribunals in India Tribunals in India are quasi judicial bodies for settling various administrative and tax-related disputes, including Central Administrative Tribunal (CAT), Income Tax Appellate Tribunal (ITAT), Customs, Excise and Service Tax Appellate Tribun ...

References

{{Reflist

External links

Official Website
Government agencies of India Indian Tribunals