Banks and financial institutions issue loans to clients with an expectation of receiving installments regularly.

It is good for both lenders and borrowers. However, at times, there are situations when lenders do not repay the loan. Either they pay intermittently or become defaulters

To facilitate the banks and financial institutions in dealing with such cases, the government of India established Debt Recovery Tribunal or DRT after the passing of the Recovery of Debts due to Banks and Financial Institutions Act (RDDBFI), 1993

These legal aid services have been quite helpful in the past. With the establishment of DRT, it became easy to recover loaned money from the customers.

The petitions against orders passed through DRT are presented before the DRAT or Debts Recovery Appellate Tribunal (DRAT).

Five such appellate tribunals and 32 debt recovery tribunals in 23 places exist all across the country.

The role of DRT


The primary goal is, of course, to recover the money from borrowers, which they owe to the lenders.

The tribunal settles down the cases of recovery from NPA as confirmed by the lender under the guidelines of the RBI.

There is a recovery officer who guides to execute the recovery certificate passed through the presiding officers.

According to npa lawyers, the DRT must follow the legal process by emphasizing quick disposal of the cases and fast execution.

As far as the applicability of the act is concerned, it is applicable in the whole country.

Also, it is applicable where the due amount is below 10,00,000.

The act is applicable when the lender files the original application for recovery.

Composition of DRT


  • The tribunal is comprised of one individual who is the presiding officer appointed by the government of India through a notification.

  • The government may allow any individual as a presiding officer from any tribunal set under any law. It is to discharge the powers of the presiding officer in any of the cases presented before the tribunal.


The central government can establish more than one tribunal to carry out the jurisdiction under this act. The government can also stipulate the area where the tribunal may carry out the jurisdiction.