(THE GIST OF PIB) Debt Recovery Tribunals (DRTs)

(MAY-2025)

The Department of Financial Services (DFS) under the Ministry of Finance organised a colloquium recently at New Delhi, bringing together Chairpersons of Debt Recovery Appellate Tribunals (DRATs) and Presiding Officers of Debt Recovery Tribunals (DRTs).

Debt Recovery Tribunals (DRTs) are quasi-judicial bodies established under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.
Their primary role is adjudicating debt recovery disputes related to banks and financial institutions.
DRTs handle loan default cases above ₹20 lakh, focusing on secured debts.
DRTs also hear Securitisation Applications (SAs) filed under the SARFAESI Act, 2002 by borrowers or aggrieved parties.
There are currently 39 DRTs functioning across India, each headed by a Presiding Officer.

A DRT is presided over by a judicial officer qualified to be a District Judge.
It can also have administrative and technical members appointed by the Central Government.

Under Section 22(2) of the Recovery of Debts Act, DRTs have powers to:

Each DRT has a territorial jurisdiction defined by the Central Government.
Jurisdiction is limited to cases involving debt recovery by banks and financial institutions.

About Debt Recovery Appellate Tribunals (DRATs)

DRATs are the appellate authorities for decisions made by DRTs.
Appeals can be filed by aggrieved parties seeking review of DRT rulings.
Currently, 5 DRATs are functioning in India, each headed by a Chairperson.
DRATs ensure judicial oversight and uniformity in debt recovery matters and promote legal clarity on complex recovery disputes.