DEBT RECOVERY TRIBUNALS (DRT)

About:

• Government of India has constituted thirty-three Debts Recovery Tribunals (DRTs) and five Debts Recovery Appellate Tribunals (DRATs) across the country on helping financial institutions recover their bad debts quickly and efficiently.
  
  
• DRT enforces provisions of the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993 and also Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002.
  • Under the RDDBFI Act, 1993 banks approach the DRT.
    
    
  • Under SARFAESI Act, 2002 borrowers, guarantors, and other any other person aggrieved by any action of the bank can approach the DRT.
    
    
  
  
  
• Appeals against orders passed by DRT lie before
  
  
• Recent Decision: Any bank or financial institution cannot approach DRTs if the amount due is less than Rs. 20 lakh.