The Debt Recovery Tribunal (DRT) was established under the Recovery of Debts and Bankruptcy Act, 1993 (RDBA) specifically to fast-track recovery of dues owed to banks and financial institutions. If a bank or NBFC has outstanding dues above ₹20 lakh from a borrower, the DRT is typically where that dispute will be resolved.
For lenders, the DRT is a tool for enforcing legitimate debt claims without going through the slower civil court process. For borrowers, it’s a forum where they can challenge recovery proceedings, contest the quantum of dues, and in some cases, seek relief against SARFAESI actions taken by the bank.
Adv. Shailendra Singh represents both lenders and borrowers before the Delhi DRT and has appeared in appeals before the Debt Recovery Appellate Tribunal (DRAT). His experience on both sides of the dispute gives him a practical understanding of how these cases actually play out — and what arguments are most likely to be persuasive.
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) gives secured creditors the power to take possession of and sell secured assets without court intervention — as long as the prescribed procedure is followed.
Borrowers can challenge SARFAESI actions before the DRT under Section 17 of the Act. This is a time-bound remedy — applications must be filed within 45 days of the SARFAESI notice or action being challenged. Missing this deadline can result in losing the right to challenge the bank’s action entirely.
Adv. Shailendra Singh advises borrowers on SARFAESI challenges, the strength of available grounds, and the urgency of filing before the limitation period expires.
Following the notification of relevant provisions of the IBC, the DRT also handles applications for insolvency resolution of individuals and partnership firms under Part III of the Code. This includes Fresh Start applications, individual insolvency resolution applications, and bankruptcy petitions where resolution has failed.
The threshold for filing an Original Application in the DRT is ₹20 lakh. Claims below this threshold are handled by the appropriate civil court.
Yes. A borrower can apply to the DRT for a stay of SARFAESI proceedings under Section 17. The DRT has the power to restore possession if it finds the bank's action was not in accordance with the law.
The RDBA provides for disposal of Original Applications within 180 days. In practice, timelines vary — but DRT proceedings are significantly faster than equivalent civil court litigation for debt recovery matters.
Yes. A guarantor who has been proceeded against by the bank can file a separate application or counter-claim before the DRT, and can also challenge any SARFAESI action taken against the guarantor's property.
