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The Debt Recovery Tribunal (DRT) decides recovery cases filed by banks and financial institutions. Whether you are a lender or a borrower, knowing the process and deadlines is essential.
Last reviewed: October 2026 · General information only, not legal advice.
Under the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act), banks and financial institutions file an Original Application (OA) before the DRT to recover debts of ₹20 lakh or more RDB Act 19. The DRT also hears borrowers' challenges to SARFAESI action SARFAESI 17. Read our SARFAESI guide →
Many DRT cases end in a negotiated one-time settlement. A well-prepared defence often improves the borrower's negotiating position. Settlement terms should be documented in writing and, where possible, recorded before the Tribunal.
A DRT order can be challenged before the Debt Recovery Appellate Tribunal (DRAT) within 30 days, subject to a mandatory pre-deposit of a portion of the amount due, which the DRAT may reduce RDB Act 20, 21. Further challenge lies by writ petition to the High Court in limited circumstances.
Banks and financial institutions can approach the DRT for recovery of debts of ₹20 lakh or more. Smaller debts are recovered through civil courts or other remedies.
Yes. Under Section 19(8) of the RDB Act, a defendant can claim a set-off or file a counter-claim against the bank in the same proceedings.
Generally yes. A guarantor's liability is co-extensive with the borrower's unless the guarantee says otherwise, and banks usually make guarantors parties to the Original Application. A guarantor may be discharged in certain cases, such as variation of the loan terms without consent.
An appeal can be filed before the Debt Recovery Appellate Tribunal within 30 days of the order, along with the pre-deposit required under Section 21 of the RDB Act, which the Appellate Tribunal may reduce.
Every case turns on its own facts. Speak to Advocate Ajay Mishra for advice specific to your situation — in person at IP Extension (Delhi) or Vaishali (Ghaziabad), by phone, or by video call.