DRT Debts Recovery Tribunals India, DRAT Debts Recovery Appellate Tribunals India
In India, the recovery of debts is governed by the SARFAESI Act, 2002. Under this act, Debt Recovery Tribunals (DRTs) and Debt Recovery Appellate Tribunals (DRATs) were established to help banks and financial institutions recover the debts owed to them.
DRTs are specialized tribunals that were set up to hear cases related to the recovery of debts from defaulters. They have the power to summon debtors, creditors, and other relevant parties to appear before them and provide evidence. They can also issue orders for the recovery of debts, which are then executed by the banks or financial institutions.
DRTs are located in major cities across India and are presided over by a Presiding Officer.
The DRT process begins with the filing of an application by the bank or financial institution. The application must provide details of the debt, the default, and the steps taken by the bank to recover the debt. The DRT will then issue a notice to the debtor, and if the debtor fails to respond, the DRT will issue an ex-parte order for the recovery of the debt.
If the debtor appears before the DRT, the case will proceed to trial. The DRT will hear the evidence presented by both parties and will make a decision on the recovery of the debt. If the DRT orders the recovery of the debt, the bank can then take possession of the assets of the debtor and sell them to recover the debt.
If either party is dissatisfied with the decision of the DRT, they can appeal to the DRAT. The DRAT is a higher tribunal that has the power to hear appeals against the orders of the DRT.
The DRAT has the power to confirm, modify, or set aside the order of the DRT. It can also issue orders for the payment of interest or costs. The decision of the DRAT is final and binding on the parties.
In conclusion, the establishment of DRTs and DRATs has been a significant step in improving the recovery of debts in India. The specialized tribunals have helped banks and financial institutions to recover their debts more effectively, and have provided a speedy and cost-effective alternative to the traditional court system.
Recovery of Debts and Bankruptcy Act (RDB Act), 1993
The RDB Act, 1993 provides for establishment of Debts Recovery Tribunals (DRTs) with original jurisdiction and Debts Recovery Appellate Tribunals (DRATs) with appellate jurisdiction, for expeditious adjudication and recovery of debts due to banks and financial institutions, insolvency resolution and bankruptcy of individuals and partnership firms and connected matters therewith. The Act aims to safeguard the interest of banks and financial institutions as lenders, while not discouraging borrowers. The Tribunals have not yet commenced taking up insolvency resolution and bankruptcy matters as the related provisions are not yet in force. The Act is applicable to cases where the amount of debt due to any bank or financial institution defined under the Act or a consortium of banks or financial institutions is Rs.20 lakh or more.
The Recovery of Debts and Bankruptcy Act (RDB Act) was enacted by the Indian government in 1993 to help banks and financial institutions recover debts from defaulters. The act provides a legal framework for the recovery of debts that are due to banks and financial institutions.
The RDB Act applies to all types of financial institutions, including banks, non-banking financial companies (NBFCs), and asset reconstruction companies (ARCs). The act provides for the establishment of Debt Recovery Tribunals (DRTs) and Debt Recovery Appellate Tribunals (DRATs) to facilitate the recovery of debts.
Under the RDB Act, a bank or financial institution can file an application with the DRT for the recovery of a debt. The DRT will then issue a notice to the borrower, who must respond within 30 days. If the borrower fails to respond, the DRT can issue an ex-parte order for the recovery of the debt.
If the borrower responds, the DRT will hear the case and make a decision on the recovery of the debt. If the DRT orders the recovery of the debt, the bank can then take possession of the assets of the borrower and sell them to recover the debt.
The RDB Act also provides for the establishment of the Asset Reconstruction Company (ARC), which is a specialized financial institution that acquires non-performing assets (NPAs) from banks and financial institutions. The ARC can then take steps to recover the debts through various means, such as restructuring, rescheduling, or settling the debts.
In addition, the RDB Act also provides for the establishment of the Insolvency and Bankruptcy Board of India (IBBI), which is a regulatory body that oversees the insolvency and bankruptcy process in India. The IBBI is responsible for the registration and regulation of insolvency professionals, as well as the setting of rules and regulations for the insolvency and bankruptcy process.
The RDB Act has been instrumental in improving the recovery of debts in India. It has provided a legal framework for banks and financial institutions to recover their debts, and has helped to reduce the burden of non-performing assets on the financial system. The act has also helped to promote a culture of timely repayment of loans and has encouraged borrowers to make timely repayments to banks and financial institutions.
Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests Act (SARFAESI Act), 2002
The SARFAESI Act, 2002 aims to regulate securitization and reconstruction of financial assets and enforcement of security interest and to provide for a Central database of security interests created on property rights and for connected matters therewith. The Act has simplified the recovery procedure for banks and specified financial institutions for recovery of secured debts from borrowers without intervention of Courts at the first stage. Borrowers can file applications in the Debts Recovery Tribunals (DRTs) against action taken for enforcement of security interest under this Act, with the appellate jurisdiction for such applications lying with the Debts Recovery Appellate Tribunals (DRATs).The Act is applicable to cases where security interest for securing repayment of any financial asset is more than Rs.1 lakh and the amount due is 20% or more of the principal amount and interest thereon. The Act is not applicable to any security interest created in agricultural land and certain properties not liable to attachment under some specified Acts.
The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests Act (SARFAESI Act), 2002 is an important piece of legislation that was enacted by the Indian government to help banks and financial institutions recover their dues from borrowers. The act provides banks and financial institutions with the power to take possession of the assets of a borrower and sell them to recover their dues in case of default.
Under the SARFAESI Act, a secured creditor (a bank or financial institution) can take possession of the collateral that has been pledged by the borrower, without the need for a court order. This power is granted to the creditor only if there is a default in repayment of the debt by the borrower. The act also provides for the establishment of the Debt Recovery Tribunal (DRT) and the Debt Recovery Appellate Tribunal (DRAT) to help creditors recover their dues.
The SARFAESI Act applies to all types of loans that are secured by assets such as land, buildings, machinery, or equipment. The act provides for the creation of a security interest in the assets of the borrower in favor of the creditor. This security interest can be created by way of a mortgage, hypothecation, or assignment of receivables.
The act also provides for the creation of a Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI), which is a repository of information on all security interests created in favor of the creditors. This helps the creditors to verify the ownership and authenticity of the assets that have been pledged as collateral.
Under the SARFAESI Act, the creditor can issue a notice to the borrower, requiring them to repay the debt within 60 days. If the borrower fails to repay the debt within the stipulated time, the creditor can take possession of the assets and sell them to recover their dues.
The SARFAESI Act has been instrumental in improving the recovery of dues by banks and financial institutions in India. It has provided a legal framework for the enforcement of security interests and has helped to reduce the burden of non-performing assets (NPAs) on the banking system. The act has also helped to promote a culture of timely repayment of loans and has encouraged borrowers to make timely repayments to banks and financial institutions.
Recovery of Debts Due to Banks and Financial Institutions Act, 1993
The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 is a legislation that was enacted by the Indian government to provide a legal framework for the recovery of debts that are due to banks and financial institutions. The act provides for the establishment of Debt Recovery Tribunals (DRTs) and Debt Recovery Appellate Tribunals (DRATs) to facilitate the recovery of debts.
Under the act, a bank or financial institution can file an application with the DRT for the recovery of a debt. The DRT will issue a notice to the borrower, who must respond within 30 days. If the borrower fails to respond, the DRT can issue an ex-parte order for the recovery of the debt.
If the borrower responds, the DRT will hear the case and make a decision on the recovery of the debt. If the DRT orders the recovery of the debt, the bank can take possession of the assets of the borrower and sell them to recover the debt.
The act applies to all types of financial institutions, including banks, non-banking financial companies (NBFCs), and asset reconstruction companies (ARCs). The act provides for the establishment of the Asset Reconstruction Company (ARC), which is a specialized financial institution that acquires non-performing assets (NPAs) from banks and financial institutions. The ARC can then take steps to recover the debts through various means, such as restructuring, rescheduling, or settling the debts.
The act has been instrumental in improving the recovery of debts in India. It has provided a legal framework for banks and financial institutions to recover their debts and has helped to reduce the burden of non-performing assets (NPAs) on the financial system. The act has also helped to promote a culture of timely repayment of loans and has encouraged borrowers to make timely repayments to banks and financial institutions.
In summary, the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 is an important legislation that has helped to improve the recovery of debts in India. The act provides a legal framework for the recovery of debts that are due to banks and financial institutions and has helped to reduce the burden of non-performing assets on the financial system.
DRT Acts, DRT Rules
The Debt Recovery Tribunal (DRT) is a specialized court in India that deals with the recovery of debts due to banks and financial institutions. The DRT was established under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. The act provides for the establishment of DRTs and Debt Recovery Appellate Tribunals (DRATs) to facilitate the recovery of debts.
In addition to the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, the functioning of the DRTs is also governed by the Debt Recovery Tribunal (Procedure) Rules, 1993. The rules provide for the procedure to be followed by the DRTs in the conduct of proceedings. The rules also provide for the form and content of various documents that are required to be filed with the DRT.
The Debt Recovery Tribunal (Procedure) Rules, 1993 prescribe the time limits within which various actions must be taken in relation to the proceedings before the DRT. For instance, the rules provide for a 45-day time limit for the DRT to decide on the admissibility of the application filed by the bank or financial institution.
The DRTs are also governed by the provisions of the Civil Procedure Code, 1908, which provides for the general procedure to be followed by courts in India. The provisions of the Civil Procedure Code, 1908 are applicable to the DRTs insofar as they are not inconsistent with the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and the Debt Recovery Tribunal (Procedure) Rules, 1993.
In conclusion, the DRT Acts and DRT Rules provide for a legal framework for the recovery of debts due to banks and financial institutions. The acts and rules prescribe the procedure to be followed by the DRTs in the conduct of proceedings and provide for the rights and obligations of the parties involved in the proceedings. The DRTs have been instrumental in improving the recovery of debts in India and have helped to reduce the burden of non-performing assets on the financial system.
DRT Advocate India, Debt Recovery Tribunal Lawyer India News 