DEBT RECOVERY

TRIBUNALS

Faculty: P.D.Sankaranarayanan, AGM

SBICRM, Gurugram

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RDDBFI ACT,
1993
DEBT
RECOVERY CPPD/187

TRIBUNALS 19MAR19

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 Debts Recovery Tribunals Debts Recovery
Appellate Tribunals
(DRTs) and (DRATs)

DEBT RECOVERY Established under the Recovery of Debts Due to

Banks & Financial Institutions Act (RDDBFI Act),

TRIBUNAL 1993 for expeditious adjudication and recovery of

debts due to Banks & FIs.

Presently 38 DRTs and 5 DRATs are functioning

in India

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 DRT Civil Court
Headed by Presiding Officer Judicial Officer
Status District Court Lower, District and HC
Standing Tribunal Court
Appellate Authority DRAT / SC Next higher court > SC
Clients Banks/FIs and borrowers Any
Pecuniary Jurisdiction a. Rs.20 lakh and above B&FI: Below Rs.20 lakh
b. 1st Appeal in SARFAESI Any other civil matter than
c. AA for IBC Individual those at DRT
Petition Original Application Plaint
Nomenclature: Bank Applicant Bank Plaintiff
Defaulter Defendant Defendant
CPC 1908 procedure Summary Suit Rule 37 Mortgage : Rule 34
Money : Rule 7
Summary : Rule 37
Decision Order Preliminary Decree
Recovery Certificate Final Decree
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Recovery Recovery Officer Execution Petition
 Applicable in cases where the total amount of debt due to the Bank is
Pecuniary Jurisdiction >=Rs.20 lac (GoI Notification No.1312E/6SEP18)

Where the cause of action wholly or partly arises – defendant or each of the
Territorial Jurisdiction defendants, actually resides or carries on business

Documents should not be time barred

Call up notice to be served on B / G through advocate demanding payment within 30 days.

O/s to be transferred to RAA after obtaining approval (CDO/ORG-DFP/2/31DEC18)

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 OA, in the prescribed format (Form I) to be filed in
DRT immediately on approval (max. within 3
months)

DRT – ORIGINAL Where documents are getting time barred OA to be

APPLICATION filed before 2 months of expiry of documents

Interim reliefs to be prayed for;

Attachment Before Injunction restraining
Impounding passport etc.
Judgment (ABJ) alienation of properties

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 ORIGINAL
APPLICATION OA drafted by empanelled
advocate to be vetted by
OA to be filed in 2 sets along
with required number of
OA Fee

Bank’s Law Officer empty file size envelopes

bearing full addresses of
defendants

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 Registrar, DRT scrutinizes and registers OA

Any defects in OA as notified by Registrar has to be

immediately rectified
FILING
After registration the details are to be uploaded in
Litigation Management System (LMS) and subsequent
hearings to be updated

Where LMS is not available Suit Monitoring Register

to be maintained

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 On registration of application, DRT issues summons
to defendants (Annexure VII) requiring them to
show cause, as to why reliefs prayed for in OA
should not be granted, within 30 days of service of
summons (DRT may allow 2 extensions)

PROCESS If undelivered twice, summons can be made by

publication in newspapers

During the first hearing the advocate should argue

for granting interim reliefs

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 • Where the DRT issues an interim order (of injunction against
the B / G debarring alienation of property, attachment of
DISOBEDIENCE OF property, furnish security, appoints receiver, commissioner,
ORDER removal of persons from custody of property) and if the B / G
disobeys the interim order or commits breach of order, an
application can be made for detention of B / G in civil prison
or attachment of their properties.

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 DEFENDANT

The defendants are

DRT may allow not more On failure to file a reply by
required to file their reply
than two extensions to the the defendant, the DRT
within one month from the
defendant to file their may pass an order on the
date of service of summons
written statement OA
– One copy to the Bank

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 HEARING

IN CASE OF UNDUE DELAY OR HEARINGS: EVIDENCE IS TAKEN ON ALL ISSUES RAISED BY DEFENDANT’S
FREQUENT ADJOURNMENTS OF AFFIDAVIT (SUMMARY PROCEDURE) ADVOCATE SHOULD BE PROPERLY
HEARINGS, SUITABLE APPLICATION TO AND CROSS EXAMINATION IS NOT REPLIED BY OUR ADVOCATE
BE SUBMITTED BEFORE DRT PERMITTED, NORMALLY

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 ORDER

AFTER GIVING BOTH APPLICANT AND DRT SHALL SEND A COPY OF EVERY ON RECEIPT OF ORDER BY DRT, BRANCH
DEFENDANT AN OPPORTUNITY OF BEING ORDER TO THE APPLICANT AND TO FILE A CAVEAT BEFORE THE DRAT
HEARD, THE DRT SHALL PASS AN INTERIM DEFENDANT
/ FINAL ORDER DIRECTING PAYMENT OF
THE AMOUNT DUE (UP TO THE DATE OF
PAYMENT)

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 RECOVERY CERTIFICATE

The presiding officer, issues a recovery certificate for The recovery officer, DRT, shall recover the dues by:
recovery of the amount of debts, inter alia, containing
the terms of payment of decreed amount

Attachment of moveable / immoveable properties of the certificate

debtor. Sale promulgation notice is issued and e-auction arranged

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 ARREST, RECEIVER, GARNISHEE

ARREST OR DETENTION OF THE
CERTIFICATE DEBTOR IN CIVIL PRISON
WHERE THEY HAVE SUFFICIENT MEANS
BUT IS AVOIDING PAYMENT
APPOINTING RECEIVER FOR ISSUING A GARNISHEE ORDER AGAINST
MANAGEMENT OF PROPERTIES ANY PERSON FROM WHOM ANY AMOUNT
IS DUE TO THE CERTIFICATE DEBTOR
DIRECTING HIM TO PAY TO THE
RECOVERY OFFICER

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 AUCTION AND SALE
Branch to submit form 13
(proclamation of sale) to
recovery officer along with
details of any assets
discovered
The recovery officer on
Sale certificate will be
receipt of form 13 with
issued, by Recovery Officer,
valuations of properties, will
to successful bidder on
issue sale proclamation
deposit of bid amount
notice and conduct e-auction
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 APPEAL BY CERTIFICATE DEBTOR

The Bank, the defendants (or even an third party) aggrieved by Where an appeal is made, B / G are required to deposit with the
the order of DRT can file an appeal -u/s20(3)- before DRAT within DRAT 50% of the amount of debt due as determined by DRT.
30 days of the date on which copies of the orders of the DRT are DRAT may waive or reduce the amount to be deposited with
received. reasons recorded in writing

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 Bank’s appeal to DRAT to Rs. 10 Lac or more but less Rs.30 lac or more –
be filed in prescribed form than Rs.30 Lacs – Rs. Rs.30000/-
with the following fee; 20000/-

BANK’S APPEAL

Appeal can be filed even

after expiry of 30D with an
application for
condonation of delay which
the DRAT may entertain, if
satisfied.

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Bank, defendants or third parties can appeal to
DRT if aggrieved by orders of recovery officer

DRT/DRAT
Appeal to be filed within 30 days from the date
of receipt of order made by Recovery Officer ---------
CLOSURE
After the suit amount is received or if the
account is settled under compromise, branch
should file a satisfaction memo in DRT for
closure of recovery proceedings.

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Thank you very much
STAY SAFE
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