The DRT’s full form in law is Debt Recovery Tribunal. The Recovery of Debts Due to Banks and Financial Institutions Act of 1993 established this particular court. Its main responsibility is to support prompt decision-making on the collection of money due to banks and other financial institutions. These institutions would otherwise have to wait a long period in traditional civil courts to obtain their dues, but the DRT gives them a location to do so fast.
For the swift resolution of disputes pertaining to amounts due to banks and other financial institutions, the DRT is crucial. In the financial industry, it facilitates quicker resolution times and more efficient bad debt management.
Major Aim of DRT in Law:
Debt recovery cases used to linger for years in the traditional civil court system, which was operating slowly. This led to the establishment of DRTs. In actuality, they have the power to grant debt collection orders and make decisions regarding bank and financial institution applications about the borrowers. Although the rigorous guidelines that govern civil court procedures do not apply to the Tribunal, it is nevertheless required to operate fairly and rationally. In other words, it facilitates a seamless procedure. Regarding the DRT’s jurisdiction, it can encompass all parties involved in a dispute if the sum at stake surpasses Rs. 20 lakhs. There are currently 39 Debt Recovery Appellate Tribunals (DRTs) across the whole country.