How the Debt Recovery Tribunal (DRT) Works: Process, Timelines, and Strategy

Jurisdiction of the DRT

Debt Recovery Tribunals adjudicate matters under the Recovery of Debts and Bankruptcy Act, 1993, and securitisation applications under the SARFAESI Act. DRTs hear claims of ₹20 lakh and above.

Two main proceedings

• Original Application (OA) filed by a bank to recover dues.
• Securitisation Application (SA) filed by a borrower against SARFAESI enforcement, within 45 days.

Typical timeline

While the statute envisages 180 days, actual disposal often takes longer. Interim orders — stay on possession, stay on auction, conditional deposits — frequently shape the commercial outcome more than the final order.

DRAT and beyond

Appeals lie to the Debt Recovery Appellate Tribunal (DRAT), with a pre-deposit requirement of 50% of the amount (reducible to 25%). Writ jurisdiction before the High Court is exercised only on limited grounds.

Strategy considerations

• Use the SA window to preserve the asset while negotiating OTS in parallel.
• Genuine procedural defects in SARFAESI compliance can be powerful grounds.
• A counter-claim by the borrower is permissible and often under-used.