The Debt Recovery Tribunal (DRT) process is a specialized legal mechanism for banks and financial institutions to recover dues exceeding ₹20 lakh. It involves filing an Original Application (OA), issuing summons to the borrower, adjudication by a Presiding Officer, and the issuance of a recovery certificate, resulting in property attachment or sale. [1, 2, 3, 4, 5] 
Key Stages of the DRT Process

• Filing the Application (OA): Creditors submit an Original Application (OA) (https://www.drtlaw.in/2024/03/drt-proceedings-step-by-step-guide.html) detailing the debt, supported by documents and fees to the DRT with appropriate jurisdiction.
• Summons & Notice: The DRT issues summons to the defendants (borrowers/guarantors), usually requiring them to appear within 30 days.
• Adjudication & Defense: The defendant files a Written Statement. The Tribunal hears arguments and reviews evidence (affidavits) from both sides.
• Final Order & Recovery Certificate: If the claim is verified, the Tribunal passes a final order and issues a Recovery Certificate to the Recovery Officer.
• Recovery Proceedings: The Recovery Officer enforces the certificate by attaching or selling the debtor’s property, appointing a receiver, or arresting the defendant (https://www.indiafilings.com/learn/debt-recovery-tribunal) in specific cases. [2, 3, 4, 6, 7] 



Important Details

• Jurisdiction: The case is filed at the DRT where the defendant resides or carries on business.
• Costs: Fees range from ₹12,000 for debts up to ₹10 lakh, up to a maximum of ₹1.5 lakh for higher amounts.
• Appeals: Parties dissatisfied with the DRT order can file an appeal with the Debts Recovery Appellate Tribunal (DRAT) within 45 days, generally after depositing 50% of the debt amount.
• SARFAESI Interaction: Borrowers can file a counter-appeal under Section 17 of the SARFAESI Act (https://www.instagram.com/reel/DFhMle0PTge/) against illegal seizure. [5, 7, 8, 9, 10] 

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[1] https://financialservices.gov.in/beta/en/page/debts-recovery-tribunals-debts-recovery-appellate-tribunals
[2] https://www.drtlaw.in/2024/03/drt-proceedings-step-by-step-guide.html
[3] https://www.indiafilings.com/learn/debt-recovery-tribunal
[4] https://legistify.com/blogs/debt-recovery-in-india/
[5] https://indiankanoon.org/doc/79851569/
[6] https://jurigram.com/advocates/resources/court-procedure/debt-recovery-tribunal-drt-procedure
[7] https://thelawbrigade.com/general-research/when-and-how-to-approach-the-drt-for-loan-recovery-cases/
[8] https://www.instagram.com/reel/DFhMle0PTge/
[9] https://www.legalpay.in/post/a-complete-guide-to-the-processes-and-procedures-of-debt-recovery-tribunals-in-india
[10] https://blog.ipleaders.in/eligible-recover-money-debt-recovery-tribunal-procedure-long-take/

DRT Lawyer Chandigarh Panchkula Mohali

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