DRT/DRAT Lawyer in India: Role, Importance, and Legal Expertise in Debt Recovery

In the dynamic landscape of India’s banking and finance sector, the need for specialized legal services in debt recovery has never been more critical. Debt Recovery Tribunals (DRTs) and Debt Recovery Appellate Tribunals (DRATs) play a central role in ensuring the swift and effective resolution of disputes related to non-performing assets (NPAs) and loan defaults. At the forefront of this specialized practice area stands the DRT/DRAT lawyer—a legal expert skilled in navigating complex recovery laws, procedures, and appellate mechanisms.

What Are DRT and DRAT?

Tribunal Under Chapter III of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act), the Debt Recovery Tribunal (DRT) was formed to enable faster recovery of cases on the issue of recovery of debts where the amount is more than 20 lakhs and the tribunal is empowered by the act. These courts are quasi judicial in name and are distributed in major cities of India.

The Debt Recovery Appellate Tribunal (DRAT) however hears an appeal against actions given by the DRTs. They exercise appellate jurisdiction on borrowers and lenders who want redressal or decision review of the DRT.

Also, upon legislation of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), it also became possible to secure lenders in recovering debts without actual litigation in a judicial court and therefore DRTs became even more relevant in settling disputes between borrowers under section 17 and 18 of the Act.

Who Is a DRT/DRAT Lawyer?

A DRT/DRAT lawyer is a legally qualified practitioner who does work in these tribunals. They are specialized in laws concerning:

• RDDBFI Act, 1993

• SARFAESI Act, 2002

• Banking Regulation Act

• Indian Contract Act (loan and guarantee contracts)

• IBC (for overlapping insolvency issues)

They are the representatives of banks and financial institutions, which intend to address the dues, and also the representatives of people taking the loans/advances and the guarantors, whose interest and legal rights are being addressed.

Role and Responsibilities of a DRT/DRAT Lawyer

For Financial Institutions:

• Making Original Applications (OA) of recovery at DRT

• Issuance and notification of notices in terms of SARFAESI

• Representing banks in possession, attachment, and sales by auction Representation in possession, attachment and auction Representation at attachment and auction Representation of banks at attachment and auction

• Rebutting borrower objections

• Taking appeal to DRAT in the event of undesirable orders

For Borrowers and Guarantors:

• Recurring SARFAESI proceedings under S 17 before DRT

• Appeals under Section 18 to the DRAT

• To obtain interim relief, stay orders or injunction

• Invalidation of valuation, process of auctioning, or possession wrongly occupied

• Negotiating the loans or restructuring with the creditor

Why Hire a Specialized DRT/DRAT Lawyer?

The Debt recovery litigation has rigid timelines, technical compliance and great documentation. An attorney who does not practice in this field is likely to overlook important procedural or substantive features. By engagement of DRT/DRAT lawyer the following is assured:

• Proper drafting of recovery applications and replies

• Strategic handling of SARFAESI actions and objections

• Timely filing of appeals and stay applications

• Expert negotiation and alternative dispute resolution

• Adherence to RBI guidelines, civil procedure rules, and tribunal practices

Common Matters Handled

• Default on home loans, business loans, or corporate borrowings

• Recovery of dues by NBFCs and scheduled banks

• Disputes over auction of mortgaged or hypothecated property

• Legal defense against arbitrary or excessive lender actions

• Disputes involving personal or corporate guarantees

• Parallel proceedings under the Insolvency and Bankruptcy Code (IBC)

Jurisdiction and Procedure

India has more than 30 DRTs and some DRATs. Tribunals jurisdiction is limited to some of the states or regions. The procedure is subject to particular rules and schedules of procedure that apply to the tribunal and it is imperative that one involves a lawyer who is conversant with practice at the local tribunal.

Conclusion

As the credit economy in India increases and levels of asset classification norms get more stringent by RBI, creditor and debtor parties are fast turning to settle matters through legal means. The role of DRT/DRAT lawyer is vital in assisting them to complete the recovery and justice gap- provide legal insight and references, procedural assistance, and strategic directions to each proceeding. As a financial institution and a borrower whose rights you are protecting, hiring or hiring a experienced lawyer specialising in DRT/DRAT Court can prove a difference.