Debt Recovery Tribunals: A Faster Forum for Bank Loan Recovery Suits

03 Sep 2026 · 2 min read · 1 views

DRAT Recovery Certificate

Debt Recovery Tribunals (DRTs) were established under the Recovery of Debts and Bankruptcy Act, 1993 to provide banks and financial institutions a dedicated, faster forum for recovering dues above a specified threshold, separate from the regular civil court system.

Filing an Original Application. A bank initiates recovery by filing an Original Application (OA) before the DRT having jurisdiction, setting out the loan, security, and default details.

Recovery Certificate. If the DRT rules in the bank's favour, it issues a Recovery Certificate, which is then executed by a Recovery Officer attached to the tribunal to realise the dues from the borrower's assets.

DRT's role under SARFAESI. Beyond standalone recovery suits, the DRT is also the forum where a borrower can challenge a bank's action under Section 17 of the SARFAESI Act, giving it a dual role in the recovery ecosystem.

Appeals. A party dissatisfied with a DRT order can appeal to the Debt Recovery Appellate Tribunal (DRAT), generally subject to a pre-deposit requirement of the disputed amount.

FAQ

Frequently Asked Questions

Yes — DRTs generally handle recovery matters above a statutory pecuniary threshold set under the Recovery of Debts and Bankruptcy Act; smaller disputes are typically pursued through regular civil courts.

The DRT hears the original recovery application or SARFAESI challenge, while the DRAT is the appellate forum that hears appeals against DRT orders.

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