DEBT RECOVERY TRIBUNALS

The Debts Recovery Tribunal have been constituted under Section 3 of the Recovery
of Debts Due to Banks and Financial Institutions Act, 1993. The original aim of the
Debts Recovery Tribunal was to receive claim applications from Banks and Financial
Institutions against their defaulting borrowers. For this the Debts Recovery Tribunal
(Procedure) Rules 1993 were also drafted.

The Debts Recovery Tribunal is also the appellate authority for appeals filed against the
proceedings initiated by secured creditors under the Securatizaton and Reconstruction of
Financial Assets and Enforcement of Security Interest Act.

What are the Debts Recovery Tribunals?

The Debts Recovery Tribunals have been established by the Government of India under
an Act of Parliament (Act 51 of 1993) for expeditious adjudication and recovery of
debts due to banks and financial institutions.

Who can file cases before the DRTs?

Where a bank or financial institution has to recover any debt from any person, it makes
an application called Original Application (OA) to the Tribunal against such person.

What are the functions and procedure of the DRTs?

The DRTs function under the provisions of the Recovery of Debts Due to Banks and
Financial Institutions Act, 1993 and as per the Debts Recovery Tribunal (Procedure)
Rules, 1993.

What is the pecuniary jurisdiction of the DRTs?

The provisions of the Recovery of Debts Due to Banks and Financial Institutions Act,
1993 shall not apply where the amount of debt due to bank or financial institution or to
a consortium of banks or financial institutions is less than ten lakhs rupees or such other
amount, being not less than one lakh rupees, as the Central Government may, by
notification, specify.

What is the fee for filing an Original Application (OA) before the Tribunal?

The fee payable as per Rule 7 of the Debts Recovery Tribunal (Procedure) Rules, 1993
is Rs.12,000/- where an amount of debt due is Rs.10.00 lakhs, Rs.12,000 plus Rs.1000
for every one lakh of debt due or part thereof in excess of Rs.10.00 lakhs subject to a
maximum of Rs.1,50,000/- where an amount of debt due is above Rs.10.00 lakhs.

What is the fee for Review Application?

The fee for Review Application is fifty per cent of the fee paid for the OA.
What is the fee for Interlocutory Application?

The fee for filing Interlocutory Application (IA) is Rs.250/-.

What is the fee for Vakalatnama?

The fee for filing Vakalatnama is Rs.5/-.

What is the fee for an appeal against the order of the Recovery Officer?

• Rs.12,000/- if the amount appealed against is less than Rs.10 lakhs.

• Rs.20,000/- if the amount appealed against is Rs.10 to 30 lakhs.
• Rs.30,000/- if the amount appealed against is more than 30 lakhs.

What is the fee for perusal of documents?

Rs.100/- per case.

What is the fee payable for certified copies of documents?

Rs.5 per page.

What is the place of filing of an Application?

The application shall be filed by the Applicant with the Registrar within whose
jurisdiction the Applicant is functioning as a bank or financial institution as the case
may be, for the time being.

What are the contents of the Application?

Every Application filed under Rule 4 of the DRT (Procedure) Rules, 1993, shall set
forth concisely under distinct heads, the grounds for such application and such grounds
shall be numbered consecutively and shall be typed in double space on one side of the
paper.

Under SARFEASI Act, 2002 for actions taken by authorized officer,

appeal/application lies with whom?.

For actions taken under sub-section (4) of Section 13 of the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 by
the authorised officer, an application shall lies to the Debts Recovery Tribunal under
section 17(1) of that Act.