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Financial Fraud & Dispute

Debt Recovery Tribunal MattersPromotional

Representation before the Debts Recovery Tribunal and DRAT — original applications, securitisation applications, appeals and execution.

Debt Recovery Tribunal Matters
Estimate Cost
₹50,000 – ₹3,00,000 Concessional Price
Typical duration
90 days

Service overview

  • Debt Recovery Tribunals are specialised forums under the Recovery of Debts and Bankruptcy Act, 1993 (RDDBFI Act), set up so that banks and financial institutions can recover large dues faster than in civil courts
  • A bank files an Original Application (OA) for debts of Rs. 20 lakh or more; borrowers and guarantors can defend, counter-claim and challenge SARFAESI actions before the same Tribunal
  • Orders can be appealed to the Debts Recovery Appellate Tribunal (DRAT)

Who needs it? / When is it needed?

  • A bank, NBFC or financial institution wanting to recover Rs. 20 lakh or more.
  • A borrower, guarantor or mortgagor served with a DRT summons or Original Application.
  • A borrower facing SARFAESI possession or auction who needs to challenge it under Section 17.
  • A party who has lost before the DRT and must file a DRAT appeal within the limitation period. Because a written statement is due within 30 days of notice and appeals within 45 days, delay can cost you your defence.

What to expect from the WCP Professionals

  • Reconstruct the account. WCP professionals audit the loan, security documents and statements of account to see exactly what is owed, whether interest and charges are permitted, and whether any step was irregular.
  • Check jurisdiction and limitation. Is the debt of Rs. 20 lakh or more? Is the claim within time? Is it the right Tribunal by the borrower's place of business or the cause of action?
  • For lenders, draft a clean Original Application with a paper book, verifying affidavit and a break-up of principal, interest and costs, and apply for interim relief such as attachment before judgment where assets are at risk.
  • For borrowers, build the defence within 30 days. WCP professionals scrutinise the statement of account, the 13(2) notice, valuation and sale procedure, and file the written statement and any counter-claim at the right stage. Where the action is under SARFAESI, WCP professionals file the Section 17 application within 45 days of the enforcement step.
  • Cross-examine the paper. Many recovery matters turn on accounting errors, unauthorised charges, improper notices and defective auctions.
  • Seek orders that matter. Stay of possession or sale, release of attached property, or directions to the bank to furnish accounts.
  • Plan the appeal. A DRAT appeal needs a pre-deposit of about 50%, which can be reduced but not waived; WCP professionals advise early if appeal is realistic.

Key deliverables

  • Case assessment and strategy note
  • Original Application, or written statement and counter-claim
  • Section 17 SARFAESI application (borrowers)
  • Interim applications: stay, attachment, injunction
  • Representation at hearings and evidence stage
  • Execution support before the Recovery Officer
  • DRAT appeal and pre-deposit advice

Standard turnaround time

  • Drafting an OA or written statement: 5 to 10 working days from complete documents. The written statement is due within 30 days of notice. The Act directs disposal of an OA in about 6 months, but contested matters often take longer. SARFAESI applications are meant to be decided within 60 days, extendable to 4 months.
  • Appeal to the DRAT: within 45 days (RDDB Act) or 30 days (SARFAESI Section 18).

Government fees, timelines & key outcomes

Original Application fee under Rule 7 of the DRT (Procedure) Rules, 1993: ₹12,000 for debts up to ₹10 lakh, plus ₹1,000 for every additional lakh or part, up to a maximum of ₹1,50,000.

Appeal to the DRAT: the appellant borrower must deposit 50% of the amount determined by the DRT, which the Appellate Tribunal may reduce to not less than 25% for recorded reasons.

Key outcomes: a recovery certificate and execution against assets for lenders; dismissal, reduction, stay or setting aside of the claim or enforcement for borrowers.

Forms & filings involved

  • Original Application under Section 19 of the RDDB Act
  • Written statement and counter-claim under Section 19(8)
  • Section 17 application under the SARFAESI Act
  • Interim applications (stay, attachment, injunction)
  • Recovery certificate and execution before the Recovery Officer
  • Appeal before the DRAT under Section 20 of the RDDB Act or Section 18 of SARFAESI

Documents required

  • Sanction letters, loan agreements, security and guarantee documents
  • Statement of account from disbursal to date
  • Demand notices, 13(2) notice, possession and auction notices
  • NPA classification details
  • DRT summons, application papers and order sheets
  • Valuation reports and sale notices
  • Board or authority letter for company or bank officers

What we need from you

  • Every notice, summons and order, with the date you received each
  • Complete and reconciled loan accounts
  • A designated person to sign affidavits and attend hearings
  • Early instructions on settlement limits
  • Funds for the pre-deposit if an appeal is expected

Important conditions

The DRT hears recovery claims by banks and financial institutions of ₹20 lakh or more; smaller claims go to civil courts.

Deadlines are strict — for example, 45 days to file a securitisation application under Section 17 of SARFAESI — and the DRAT pre-deposit must be made for an appeal to be heard.

Additional information

  • Debts below Rs. 20 lakh go to the civil courts or other routes.
  • The Recovery Officer can attach and sell assets or appoint a receiver after a recovery certificate is issued.

The estimated cost covers indicative professional fees only. Government fees, stamp duty and taxes are payable at actuals.

How it works

  1. 1. Raise a service enquiry describing your requirement.
  2. 2. A Relationship Manager reviews it and opens it for bidding.
  3. 3. Pay into escrow and assign the professional you select.
  4. 4. Track progress to completion, then accept and release payment.
Raise an enquiry for Debt Recovery Tribunal Matters   →

Frequently asked questions

What is the DRT fee for an Original Application?

₹12,000 up to ₹10 lakh, plus ₹1,000 for each additional lakh, capped at ₹1,50,000.

What is the minimum claim for the DRT?

₹20 lakh; smaller recovery claims are filed in civil courts.

How much must be deposited to appeal to the DRAT?

50% of the amount determined by the DRT, which can be reduced to not less than 25%.

What is a recovery certificate?

The certificate issued after the DRT decides a claim, executed by the Recovery Officer through attachment and sale of assets.

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Debt Recovery Tribunal Matters — Financial Fraud & Dispute | White Collar Professional