Debt Recovery tribunal

Keeping in line with the international trends on helping financial institutions recover their bad debts quickly and efficiently, the Government of India has constituted thirty three Debts Recovery Tribunals and five Debts Recovery Appellate Tribunals across the country. The Debts Recovery Tribunal (DRT) enforces provisions of the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993 and also Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002. Under the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993 banks approach the Debts Recovery Tribunal (DRT) whereas, under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002 borrowers, guarantors, and other any other person aggrieved by any action of the bank can approach the Debts Recovery Tribunal (DRT). Debts Recovery Tribunal are located across the country. Some cities have more than one Debts Recovery Tribunals. New Delhi, Chennai, Kolkata and Mumbai have three Debts Recovery Tribunals. Ahmedabad and Chandigarh have two Debts Recovery Tribunal (DRT) each. One Debts Recovery Tribunal has been constituted at Allahabad, Aurangabad, Bangalore, Coimbatore, Cuttack, Earnakulam, Guwahati, Hyderabad, Jabalpur, Jaipur, Lucknow, Madurai,Nagpur, Patna, Pune, Vishakapatnam and Ranchi. From Archive Bank Officers should carefully examine the title deeds being deposited by them: DRT-2 Chennai. DRTs cannot adjudicate any claim of the bank. When documents are challenged, DRT must seek expert evidence. DRTs can fix rate of interest. Financial jurisdiction of DRT does not change with the change of amount adjudicated. Conscious absenteeism from proceeding before DRT uncondonable The DRT must adjudicate the claim of the applicant only. Limitation for enforcing foreign judgments before DRTs is 3 years Indian Evidence Act not applicable to DRTs DRTs fume at pleas for cross examination as delaying tactic. No harm if DRT accepts 2nd statement of defense in transferred matters. Co-op Banks out of DRT net DRT cannot ask the lessee to pay more than the indenture amount. Appeal to DRT under SRFAESI Act to be charged as per DRT Rules:: SC Proceedings before DRT is no bar for other proceedings to go on. No special clauses for tenants in DRT Act Strong message from DRT Mumbai - Exercise Powers with Responsibility. Jurisdiction of a Recovery Officer - cannot transgress that of the DRT. Adjournments before DRTs should be a rarity. DRTs cannot be expected to grant adjournments merely for the asking. Recovery Officer of a DRT is bound by Schedule II of the Income Tax Act The Recovery Officer of a DRT cannot arrest a lady defaulter. Powers of DRTs are limited where Companies are under liquidation. The DRT Commissioner has right of way over the Official Liquidator Proceedings can go on in Consumer Court as well as in DRT Consumer Court are not forums over DRTs BANKING OMBUDSMAN & DRT ACT ARE DIFFERENT AND EXCLUSIVE Proceedings between two parties based on the same facts can go on simultaneously before the two forums. Appeals against orders passed by Debts Recovery Tribunal (DRT) lie before Debts Recovery Appellate Tribunal (DRAT). There five Debts Recovery Appellate Tribunal (DRATs) located in the country. One Debts Recovery Appellate Tribunal (DRAT) is located each at Delhi, Allahabad, Mumbai, Chennai and Kolkatta. A Debts Recovery Appellate Tribunal (DRAT) conducts circuit sittings in different cities where Debts Recovery Tribunal (DRTs) are located over which it has appellate jurisdiction. There are a number of States that do not have a Debts Recovery Tribunal. The Banks & Financial Institutions and other parties in these States have to go to Debts Recovery Tribunal located in other states having jurisdiction over there area. Thus the territorial jurisdiction of some Debts Recovery Tribunal is very vast. For example, the Debts Recovery Tribunal l