Introduction & Scope of DRT (Delhi)

The Debt Recovery Tribunal (DRT) is a quasi‑judicial body established under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (“RDDBFI Act”) to provide an expeditious forum for recovery of outstanding dues owed to banks and financial institutions. The Tribunal has nationwide jurisdiction (excluding Jammu & Kashmir) for claims exceeding ₹20 lakh and exercises powers akin to a District Court.

DRTs are presided over by judicial officers appointed by the Government of India. They are supported by Recovery Officers authorised to enforce Tribunal orders . In Delhi, there are multiple Benches (e.g., DRT‑I, DRT‑II, DRT‑III), each with its own territorial jurisdiction .

The DRT mechanism streamlines debt recovery for Financial Institutions (FIs) and banks, offering a speedier alternative to civil proceedings, which are often encumbered by procedural delays.

Legal Grounds for Filing a Case Before DRT

The jurisdiction of the Debt Recovery Tribunal in Delhi is primarily invoked under the Recovery of Debts and Bankruptcy Act, 1993 (formerly known as the RDDBFI Act), and SARFAESI Act, 2002. A financial institution or bank can file an Original Application (OA) before DRT for recovery of a debt exceeding ₹20 lakhs, provided the debt is legally enforceable.

The following are valid grounds under which a case may be instituted before DRT:

  • Default in Repayment of Loan: When a borrower or guarantor fails to repay a loan or installment as per the loan agreement.
  • Classified as Non-Performing Asset (NPA): If the account is declared NPA under RBI guidelines, the creditor may seek recovery under DRT.
  • Enforcement under SARFAESI Act: Where secured creditors seek to enforce security interests like hypothecation or mortgage without court intervention.
  • Compromise Settlement Failure: When a One-Time Settlement (OTS) or compromise scheme fails and recovery is sought.

Only banks, financial institutions, or securitisation companies notified under the applicable acts can file a claim. Private parties or individuals do not have standing to approach the DRT for recovery.

Jurisdiction & Identifying the Appropriate DRT Bench in Delhi

To file a case in a Debt Recovery Tribunal in Delhi, identifying the correct jurisdiction is a critical first step. Jurisdiction is determined on the basis of several factors:

A. Territorial Jurisdiction

The application must be filed with the DRT having jurisdiction over the area:

  • Where the branch or office of the bank or financial institution sanctioning the loan is situated, or
  • Where the defendant resides or carries on business, or
  • Where the security property (collateral) is located.

In Delhi, there are currently three DRT benches:

  • DRT-I, Delhi (Situated at Jeevan Tara Building, Parliament Street)
  • DRT-II, Delhi
  • DRT-III, Delhi

Each Bench handles matters based on an administrative division of areas assigned by the Ministry of Finance and the Department of Financial Services. Litigants must refer to the latest jurisdiction notification from the DRT Registrar or DRT Delhi website to determine the correct Bench.

B. Pecuniary Jurisdiction

DRTs handle cases involving claims of ₹20 lakhs and above. Claims below this threshold fall outside DRT jurisdiction and must be filed in civil courts.

Step-by-Step Procedure to File a Case in DRT, Delhi

Filing a case before the Debt Recovery Tribunal in Delhi involves the following structured legal process:

Step 1: Drafting the Original Application (OA)

The process begins with drafting an Original Application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993. The OA must contain:

  • Complete details of the loan transaction,
  • Amount due, supported by a statement of accounts,
  • Details of borrower and guarantor,
  • Particulars of the secured asset, if applicable,
  • List of documents relied upon, duly indexed and paginated,
  • Affidavit in support of the claim.

Step 2: Filing the Application

The application must be submitted in physical form at the Filing Counter of the appropriate DRT Bench. It should be accompanied by:

  • Prescribed court fee, calculated as per the Recovery of Debts and Bankruptcy Rules, 1993 (maximum capped at ₹1.5 lakhs),
  • A Vakalatnama if the application is filed through an advocate.

Online filing is also enabled through the eDRT portal, though physical submission is still required for certain documents and affidavits.

Step 3: Issuance of Notice

Once the OA is scrutinized and registered, the DRT issues a notice to the defendants, directing them to file a written statement within a stipulated period, typically 30 days.

Step 4: Hearing and Evidence

The Tribunal then proceeds to frame issues, record evidence through affidavits and cross-examination, and permits submission of written arguments.

Step 5: Final Order and Recovery Certificate

After hearing both parties, the DRT passes a final order. If the claim is allowed, a Recovery Certificate (RC) is issued under Section 19(22) of the Act, which is executable by the Recovery Officer for attachment and sale of the assets.

Documents Required & Court Fee Structure for Filing in DRT Delhi

Proper documentation is vital for successfully instituting a claim before the Debt Recovery Tribunal. Any deficiency in documentation may result in delay, return of filing, or even dismissal of the claim.

A. Mandatory Documents to be Filed

The following documents must be submitted along with the Original Application (OA):

  1. Statement of Account certified under the Bankers’ Books Evidence Act, 1891.
  2. Loan Agreement and Sanction Letter.
  3. Demand Notice issued under Section 13(2) of SARFAESI Act (if applicable).
  4. Security Documents like Mortgage Deed, Hypothecation Agreement, or Pledge Documents.
  5. Copy of PAN and Address Proof of the borrower(s) and guarantor(s).
  6. Correspondence such as recall notices, notices of default, etc.
  7. Affidavit of Evidence in support of the OA.
  8. Vakalatnama in favour of the authorized advocate or bank officer.
  9. Index and List of Documents with pagination.
  10. Power of Attorney/Board Resolution, authorizing the filing on behalf of the applicant bank or institution.

All documents must be properly attested, indexed, and filed in triplicate.

B. Court Fee Structure

Court fees are payable as per Rule 7 of the Debt Recovery Tribunal (Procedure) Rules, 1993. The fees must be paid through a Demand Draft drawn in favor of “Registrar, DRT Delhi”.

  • Claims up to ₹10 lakh – ₹12,000
  • Above ₹10 lakh to ₹20 lakh – ₹20,000
  • Above ₹20 lakh – 1% of the claim amount subject to a maximum of ₹1.5 lakh

The Registrar may return the OA if the fee is insufficient or the documents are incomplete.

Post-Filing Procedure, Hearing & Recovery Process

After successful filing and registration of the Original Application before the appropriate DRT Bench in Delhi, the proceedings enter into the adjudication and enforcement phase.

A. Service of Summons and Defendant’s Response

Once the application is admitted:

  • The Registrar issues summons/notices to all respondents/defendants.
  • Defendants are required to file a Written Statement (WS) within 30 days, which can be extended by another 15 days at the discretion of the Tribunal.
  • The WS must be accompanied by supporting documents and evidence by way of affidavit.

B. Preliminary Hearings & Framing of Issues

During the first few hearings:

  • The Tribunal may conduct a preliminary hearing to assess maintainability.
  • On satisfaction, the Tribunal frames issues for determination and may fix a schedule for submission of evidence and arguments.

C. Evidence and Argument Stage

  • Parties are required to submit evidence on affidavit, which can be subject to cross-examination.
  • Final submissions are made by way of oral arguments and/or written submissions.
  • The Tribunal has the power to summon witnesses, demand additional documents, or seek clarification as it deems necessary under the principles of natural justice.

D. Final Order and Recovery Certificate

  • After considering all material, the Presiding Officer passes a reasoned judgment.
  • If the claim is allowed, a Recovery Certificate (RC) is issued under Section 19(22) in favor of the applicant.
  • The RC is forwarded to the Recovery Officer, who is empowered under Section 25 to 28 of the Act to:
    • Attach and sell movable or immovable properties,
    • Arrest and detain the debtor,
    • Appoint a receiver,
    • Garnishee third-party dues.

The enforcement mechanism under DRT is often time-bound, with statutory targets set for expeditious disposal.

Appeals, Limitation Period & Practical Considerations

A. Appeal to DRAT (Debt Recovery Appellate Tribunal)

If a party is aggrieved by an order passed by the DRT, they may file an appeal before the DRAT under Section 20 of the Recovery of Debts and Bankruptcy Act, 1993. The appeal must satisfy the following conditions:

  • Filed within 30 days from the date of DRT’s order.
  • Must be accompanied by 50% of the amount of debt determined by DRT or ₹1 crore, whichever is less, unless waived by the DRAT.
  • The appeal lies before the DRAT Delhi (located at Jhandewalan), which has jurisdiction over appeals from DRT benches within its territorial scope.

B. Limitation Period for Filing OA

The DRT follows the Limitation Act, 1963. The general limitation period to file an OA for debt recovery is:

  • Three years from the date when the debt becomes due, or
  • From the date of the last acknowledgment of debt in writing (including balance confirmation, part-payment, or settlement letter).

C. Practical Tips for Successful Filing in DRT, Delhi

  • Ensure strict compliance with documentation norms and court fee requirements.
  • Check jurisdiction carefully before choosing the DRT Bench.
  • Use the eDRT portal for faster application tracking, but do not ignore physical filing formalities.
  • Appoint a competent advocate with experience in debt recovery litigation and familiarity with banking norms.
  • Maintain regular follow-up with the Tribunal and the Recovery Officer post issuance of RC.

Conclusion

While the Debt Recovery Tribunal in Delhi offers a fast-track and legally empowered mechanism for banks and financial institutions to recover dues, the process demands meticulous compliance with procedural and evidentiary requirements. Unlike conventional civil suits, DRT proceedings are strictly time-bound and focused on documentation rather than prolonged oral testimony, making strategic preparation essential. From identifying the correct jurisdiction to presenting an airtight Original Application supported by admissible evidence, every stage carries legal weight. Hence, engaging a seasoned legal practitioner and adopting a proactive litigation strategy is not just advisable—it is imperative for securing a favourable and enforceable outcome in the complex realm of debt recovery litigation.