Debt Recovery Tribunal

About the Debt Recovery Tribunal:

• The Debts Recovery Tribunals (DRTs) and Debts Recovery Appellate Tribunals (DRATs) were established under the Recovery of Debts and Bankruptcy Act (RDB Act), 1993.
• Objective: These are established to provide expeditious adjudication and recovery of debts due to Banks and Financial Institutions.
• At present, 39 Debts Recovery Tribunals (DRTs) and 5 Debts Recovery Appellate Tribunals (DRATs) are functioning across the country.
• Each DRT and DRAT are headed by a Presiding Officer and a Chairperson respectively.
• Under section 22(2) in the Recovery Of Debts Due To Banks And Financial Institutions Act, 1993 DRT has the following powers:
  • summoning and enforcing the attendance of any person and examining him on oath;
  • requiring the discovery and production of documents;
  • receiving evidence on affidavits;
  • issuing commissions for the examination of witnesses or documents;
  • reviewing its decisions;
  • dismissing an application for default or deciding it ex parte;
  • setting aside any order of dismissal of any application for default or any order passed by it ex parte;
  • any other matter which may be prescribed.
• Composition:
  • It is headed by the Presiding Officer to be appointed, by notification, by the Central Government.
  • Qualification of Presiding Officer: A person shall not be qualified for appointment as the Presiding Officer of a Tribunal unless he is, or has been, or is qualified to be, a District Judge.
  • Tenure: The Presiding Officer of a Tribunal shall hold office for a term of five years from the date on which he enters upon his office and shall be eligible for reappointment.