The Debts Recovery Tribunal (DRT) is the specialised forum for recovery of debts of ₹20 lakh and above owed to banks and financial institutions. It also hears applications by borrowers and others challenging action taken under the SARFAESI Act. Proceedings move on strict timelines, and early legal advice can make a significant difference.
Adv. S. Mohamed Yunus represents borrowers, guarantors, MSMEs and other aggrieved parties from Coimbatore in DRT proceedings — filing defences and counter-claims, challenging SARFAESI measures, negotiating settlements and pursuing appeals before the Debts Recovery Appellate Tribunal (DRAT).
Scope
Matters handled
- Defending recovery applicationsWritten statements, set-off and counter-claims in original applications filed by lenders.
- Securitisation applicationsChallenging possession, auction and other SARFAESI measures under Section 17.
- Guarantor representationProtecting the rights of personal and corporate guarantors.
- Auction challengesObjections to defective valuation, notice and auction procedure.
- Recovery certificate proceedingsProceedings before the Recovery Officer, including objections and settlement.
- Appeals before DRATAppeals against DRT orders, including applications for reduction of pre-deposit.
- Settlement before the TribunalNegotiated settlements recorded before the Tribunal to close the dispute.
Process
How the process works
- 1
Notice & file review
Studying the application, loan records and SARFAESI notices.
- 2
Urgent protection
Filing the application or defence within time and seeking interim relief where justified.
- 3
Hearing
Replies, evidence by affidavit and arguments before the Presiding Officer.
- 4
Order, settlement or appeal
Final order or settlement, and appeal to the DRAT where necessary.
Documents to keep ready
- Copy of the original application / notice from the DRT
- Loan and security documents
- SARFAESI demand, possession and auction notices
- Account and loan statements
- Valuation report and sale notice (in auction cases)
- Correspondence and settlement proposals
Relevant laws
- Recovery of Debts and Bankruptcy Act, 1993
- SARFAESI Act, 2002 — Section 17
- Debts Recovery Tribunal (Procedure) Rules, 1993
- Insolvency and Bankruptcy Code, 2016 (personal guarantor matters)
FAQ
Frequently asked questions
What is the minimum amount for a case before the DRT?
Banks and financial institutions can approach the DRT for recovery of debts of ₹20 lakh or more. Smaller amounts are pursued through civil courts or other remedies.
What is the time limit to challenge SARFAESI action before the DRT?
An application under Section 17 of the SARFAESI Act must ordinarily be filed within 45 days from the date on which the measure was taken.
Is a deposit required to appeal against a DRT order?
Yes. An appeal to the DRAT generally requires a deposit of 50% of the amount determined, which the Appellate Tribunal may reduce to not less than 25% for reasons recorded.
Can a matter before the DRT be settled?
Yes. Borrowers and lenders frequently arrive at a one-time settlement, which can be recorded before the Tribunal to close the proceedings.
The information on this page is general in nature, based on the law as generally understood, and is not legal advice. Legal positions change and outcomes depend on the facts of each case. Please consult before acting on any information.
