1. What is the Debt Recovery Tribunal (DRT)?
The Debt Recovery Tribunal (DRT) is a special court in India that handles cases related to recovery of debts due to banks and financial institutions under the Recovery of Debts and Bankruptcy Act, 1993.
2. Who can file a case in DRT?
Banks and financial institutions can approach DRT for recovery if the debt amount is above ₹20 lakhs. Borrowers or guarantors can also file appeals against recovery actions.
3. What is the minimum limit for DRT cases?
Only cases where the amount of debt is ₹20 lakhs or more can be filed before DRT. Below this amount, cases are handled in civil courts.
4. Can individuals approach DRT directly?
Yes, borrowers and guarantors can approach DRT to challenge recovery proceedings or to file appeals under SARFAESI Act.
5. How long does it take to resolve a DRT case?
As per law, DRT cases should be resolved within 6 months, but in practice, it may take longer depending on complexity and backlog.
6. What is SARFAESI Act in relation to DRT?
SARFAESI Act allows banks to seize and sell borrower’s assets for loan recovery without court intervention, but appeals against such actions can be filed before DRT.
7. What is the role of a DRT advocate?
A DRT advocate represents borrowers, guarantors, or banks in matters related to debt recovery, loan disputes, SARFAESI appeals, and execution proceedings.
8. Can a borrower get a stay order from DRT?
Yes, a borrower can file an application before DRT to obtain a stay on recovery actions or property auctions initiated by banks.
9. What is DRAT?
Debt Recovery Appellate Tribunal (DRAT) is the appellate authority where appeals from DRT orders can be filed.
10. What is the time limit to file an appeal in DRAT?
Appeals against DRT orders must be filed within 30 days before the DRAT.
11. Can DRT stop bank auctions?
Yes, DRT can stay or set aside bank auctions if due procedure has not been followed or if borrower proves valid grounds.
12. What documents are needed for DRT cases?
Loan agreements, mortgage deeds, repayment records, bank notices, and correspondence are essential documents for DRT proceedings.
13. Can NPA accounts be challenged in DRT?
Yes, borrowers can challenge the classification of their account as NPA (Non-Performing Asset) before DRT if it was wrongly declared.
14. Can DRT cases be settled?
Yes, settlement through compromise or One-Time Settlement (OTS) is possible during DRT proceedings.
15. What is the difference between DRT and Civil Court?
DRT is a specialized tribunal for debt recovery cases above ₹20 lakhs, whereas civil courts handle other types of disputes.
16. Can DRT grant interim relief?
Yes, DRT can grant interim relief such as stay on recovery or auction until the final decision is made.
17. Do I need a lawyer for DRT cases?
Yes, a lawyer with DRT expertise can help present evidence, file appeals, and protect your rights effectively.
18. Can guarantors be sued in DRT?
Yes, guarantors of loans can also be made parties in DRT cases as they are equally liable for repayment.
19. What is the fee for filing a DRT case?
The court fee in DRT is calculated based on the debt amount claimed by the bank or financial institution.
20. Can I appeal against SARFAESI action in DRT?
Yes, borrowers and guarantors can file an application under Section 17 of SARFAESI Act before DRT.
21. Can DRT cases be transferred?
Yes, cases can be transferred to another DRT if jurisdictional issues arise or on directions from higher courts.
22. What is a recovery certificate in DRT?
A recovery certificate is issued by DRT once it determines the debt amount, authorizing recovery officers to proceed with enforcement.
23. Can DRT attach properties?
Yes, DRT can order attachment and sale of movable and immovable properties to recover dues.
24. Can I represent myself in DRT without a lawyer?
Yes, but it is not advisable. Legal complexities require the expertise of a DRT lawyer for better results.
25. What is the jurisdiction of DRT?
DRT has jurisdiction over debt recovery cases filed by banks and financial institutions above ₹20 lakhs.
26. Can borrowers get compensation from DRT?
Yes, if banks act illegally or without following due process, borrowers may seek compensation through DRT.
27. How are DRT orders executed?
Once a recovery certificate is issued, the Recovery Officer executes the order by attaching and auctioning properties.
28. Can I challenge a DRT order in High Court?
Yes, after exhausting appeal remedies in DRAT, a borrower can approach High Court under writ jurisdiction.
29. Are personal loans also covered under DRT?
Yes, DRT covers recovery of all types of loans including housing, personal, business, and commercial loans above ₹20 lakhs.
30. Can DRT cases be settled outside the tribunal?
Yes, parties can opt for settlement outside DRT through mediation or compromise and then withdraw the case.
31. Does DRT handle corporate loan defaults?
Yes, DRT has jurisdiction over recovery cases related to corporate loans as well.
32. Can DRT cases be withdrawn?
Yes, the applicant bank or borrower can withdraw a case with permission from the tribunal.
33. What is the role of Recovery Officer in DRT?
The Recovery Officer executes recovery certificates issued by DRT through attachment and auction of assets.
34. Can DRT order arrest of defaulters?
In extreme cases, DRT can order arrest or civil imprisonment of defaulters for non-compliance.
35. Can DRT cases be appealed in Supreme Court?
Yes, after DRAT and High Court, matters of law can be appealed before the Supreme Court.
36. Can DRT provide relief against credit rating impact?
DRT does not directly control credit ratings, but favorable orders may help in rectifying wrongful entries.
37. Is there any time limit for banks to approach DRT?
Banks must approach DRT within the limitation period as prescribed under law, usually three years from default.
38. Can co-borrowers be made party in DRT cases?
Yes, co-borrowers are equally liable and can be impleaded in DRT proceedings.
39. Can DRT cases be challenged on technical grounds?
Yes, borrowers can challenge recovery actions on grounds of improper notice, lack of authority, or procedural lapses.
40. Can DRT allow restructuring of loans?
DRT itself does not restructure loans, but settlement and restructuring can be agreed upon between borrower and bank.
41. Can DRT proceedings be stayed by High Court?
Yes, High Courts can stay DRT proceedings under writ jurisdiction in exceptional cases.
42. What happens if a borrower ignores DRT notice?
Ignoring a DRT notice may result in ex-parte orders, recovery certificates, and attachment of property.
43. Can arbitration awards be enforced through DRT?
No, DRT only deals with bank and financial institution debts. Arbitration awards are enforced in civil courts.
44. Can DRT cases be filed against government institutions?
No, DRT jurisdiction is limited to debts owed to banks and financial institutions.
45. What is the limitation period for filing SARFAESI appeal in DRT?
Applications under Section 17 SARFAESI must be filed within 45 days of the action taken by the bank.
46. Can DRT waive interest on loans?
DRT does not waive interest, but it can examine whether interest charged is excessive or illegal.
47. Can DRT order refund of excess money recovered?
Yes, if banks recover excess money or act beyond their rights, DRT can direct refund with compensation.
48. What is the appeal fee in DRAT?
For filing an appeal in DRAT, the borrower must deposit 50% of the debt due, which may be reduced to 25% at the discretion of DRAT.
49. Can DRT cases be heard online?
Yes, many DRTs now conduct virtual hearings through video conferencing for convenience of parties.
50. Why should I hire a DRT lawyer?
Hiring an experienced DRT lawyer ensures proper representation, timely filing of appeals, effective defense against recovery actions, and increased chances of relief in complex debt cases.