Debt recovery becomes necessary when it comes to insolvency and bankruptcy issues. Corporate or business legal bodies create certain flexibilities as per debt recovery laws and then try to get the issues resolved in the best possible ways. In a Debt Recovery Tribunal case (DRT), debt payable to financial institutions and banks is recovered speedily. DRTs came into existence after Recovery of Debts due to Banks and Financial Institutions Act (RDBBFI), 1993 was passed. If a person or organization wishes to file an appeal against the passed DRT orders, then the respective could seek help from Debt Recovery Appellate Tribunal (DRAT).
There are certain provisions for DRT, like it is applicable in all the states of India except Jammu and Kashmir. For its applicability, the debt amount should be less than 10,00,000 rupees. It is applicable only when the original debt recovery application is filed by financial institutions or banks. More than one tribunal can be set up by the Central Government of India to exercise the power, authority and jurisdiction under RDBBFI Act.
Debt recovery Application Should be Filed Under Registrar or Any Concerned Officer
Debt details from any respondent and the related circumstances should be documented while filing the application. Crossed Bank Draft or Indian Postal Order that determine the fees of the application are required at this time. Application should be filed with the Registrar under whom the applicant financial institution or bank is functioning. Authorised legal practitioner should present the application or his agent can also do the same. Approval of the application on a particular date for presenting it should be filed under the registrar or any other concerned officer.
The registrar is the one responsible for issuing the original application and summoning it after the verification. Once the case is resolved after many steps, the presiding officer grants Recovery Certificate to Recovery Officer for the execution of the process.