Rajasthan High Court Upholds DRAT’s Power To Reduce Interest Rate In Debt Recovery Matters

The Rajasthan High Court confirmed that the Debt Recovery Appellate Tribunal (DRAT) possesses discretion to reduce interest rates in debt recovery cases where circumstances justify equitable relief. The Court held that DRAT, as an appellate authority, can re-evaluate both factual and legal aspects of debt disputes, including reasonableness of contractual interest. This decision acknowledges the tribunal’s role in balancing borrower hardships against banking rights, thereby preventing unfair financial burden while safeguarding lenders’ recovery. The judgment strengthens jurisprudence on the scope of DRAT’s powers and underscores judicial recognition of economic fairness in recovery litigation.