A DRT is an impartial adjudicatory physique that has been created via the Debt Recovery Tribunals Act, 1999 to expedite the technique of restoration of cash owed to lenders via organizations and individuals. A DRT hears things associated to bankruptcy, insolvency or enterprise agreement in a rapid and within your means manner. Different Types Of DRTs: There are exclusive kinds of DRTs in India i.e. National Company Law Tribunal (NCAT), High Courts, State Companies’ Wards and Debt Discharge Tribunals (SDTs) And debt recovery appellate tribunal(DRAT)

What is the technique observed in a DRT?

A DRT is an adjudicatory physique that tries to settle things associated to cash owed through organizations or individuals. It might also be financial disaster proceedings, insolvency or different disputes. Compared to courts, DRTs are designed to be faster, much less steeply-priced and greater informal, with easier strategies and policies of evidence. They additionally permit greater discretion for the tribunal. In instances earlier than a DRT, each aspects make their case to a panel of members, who can ask questions and make recommendations. Often, the events work out a agreement themselves. If no settlement is reached, the tribunal problems a binding order.

How to file a case in a DRT?

DRTs can entertain a number of sorts of cases. Debt Recovery Tribunal can hear instances associated to non-payment of dues, insolvency resolution, financial disaster proceedings, etc. In case of non-payment of dues or insolvency or bankruptcy, the creditor have to file a petition earlier than the DRT. The petition should be accompanied with the aid of a licensed reproduction of the court docket order that has framed the debt as a payable one. If the count number is associated to insolvency or bankruptcy, the petition need to additionally be accompanied with the aid of a licensed replica of the order handed underneath area 238 of the Companies Act.

Features of Debt Recovery Tribunal

There are positive aspects of Debt Recovery Tribunal that set it aside from ordinary courts.

– There is no jury machine for DRTs. But the tribunal may also have one or greater presiding officers appointed by way of the central government.

– Unlike in the traditional court docket system, there is no want to appoint an suggest to symbolize you in a DRT. You can characterize yourself, which is more cost-effective and quicker.

– There is no want for strict regulations of proof and procedure, as in everyday courts. The DRTs are designed to be much less formal and faster to conclude matters.

– Witnesses are commonly no longer cross-examined in DRTs.

– Parties can existing their instances even barring an advocate.

– The tribunal is empowered to supply binding orders and impose penalties.

– There is no attraction in opposition to a choice of the DRT.

– There are sure time limits for imparting your case.

Limitations of DRTs

The advantages, however, should be weighed in opposition to some big limitations. – DRTs are now not ordinary courts of law. They have been created especially to settle positive types of disputes, such as these between a creditor and debtor.

  • DRTs have no jurisdiction over crook matters.
  • DRTs can’t adjudicate over things of a constitutional nature.
  • DRTs can’t deal with things of equity, such as fits for particular overall performance or winding-up petitions.


DRTs are designed to settle disputes between debtors and lenders rapidly and inexpensively, besides the formality of the everyday courts. The blessings of the DRT system, however, ought to be weighed towards its limitations. While DRTs can be quicker and much less costly than normal courts, they are no longer courts of law. They can solely hear things specially targeted for their jurisdiction.


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