Debt Recovery Tribunal & Debt Recovery Appellate Tribunal- Most Essential Tribunal

In India, Debts Recovery Tribunal & Debt Recovery Appellate Tribunal applies norms and guidelines of the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993 and also Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002 for recovery related options. These tribunals have been established to speed up the recovery in the case of non-performing assets of Banks, Financial Institutions etc. Under the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993, banks approach these tribunals.

Under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002, borrowers, guarantors and any other person distressed by any action of the bank can appeal about it. 

There are several such tribunals in India located at different places. There are many cities like Ahmedabad and Chandigarh that have more than one tribunal. Appeals against orders passed by these tribunals lie before Debts Recovery Appellate Tribunal (DRAT). India has these tribunals in different cities including Delhi, Allahabad, Mumbai, Chennai and Kolkata. There are many states that have no such tribunals. In such states, Banks & Financial Institutions and other parties have to go to tribunals located in other states.  

This tribunal is controlled by a Presiding Officer. The Presiding Officer is generally equivalent to the rank of Dist. & Sessions Judge. A Presiding Officer of a Debts Recovery Tribunal is backed by a number of officers of other ranks, but it is not required that these officers have a judicial background. Therefore, the Presiding Officer of this tribunal is the sole judicial authority to hear and pass any judicial order. 

Each Debts Recovery Tribunal has two Recovery Officers. The work amongst the Recovery Officers of this court is allocated by the Presiding Officer of the Tribunal. Though the Recovery Officer of the Tribunal need not be a judicial Officer, but the orders passed by a Recovery Officers are judicial in nature, and are appealable before the Presiding Officer of it.

 These tribunals ensure about the evidences, proofs or any recordings related to recovery, and orders passed by a Recovery Officer are judicial in nature, and are appealable before the Presiding Officer who is in charge for its regulatory. All evidences are taken by way of an affidavit. Cross examinations is allowed in case it is requested by the defense, and that too if the Debts Recovery Tribunal (DRT) finds that such a cross examinations is helpful for justice.