How Does debt recovery appellate tribunals in India Works?

Introduction :

Debt recovery appellate tribunals (DRATs) in India are specialised tribunals that hear appeals from debt recovery tribunals (DRTs) and are set up to reduce the burden on the courts. DRATs are established under the provisions of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (RDDBFI Act).

Working Process of Debt recovery appellate tribunals:

1. The Indian government has set up DRATs across the country to expedite the recovery of loans from defaulters. The tribunals are presided over by a presiding officer, who is a retired judge of the High Court. The DRAT hears appeals from the decisions of DRTs, which are established by the government to hear and decide matters relating to recovery of dues from banks and financial institutions. The DRATs are empowered to hear appeals from orders passed by DRTs and to pass such orders as it may deem fit. The DRATs can also issue interim orders for the purpose of protecting the interest of banks and financial institutions.
2. In order to file an appeal before the DRAT, an aggrieved party must file a memorandum of appeal before the DRAT along with a copy of the order of the DRT that is being challenged. The memorandum of appeal must state the grounds on which the appeal is based.
3. In addition to the memorandum of appeal, the aggrieved party must deposit a fee before the DRAT. The fee amount varies depending on the amount of the claim. After the appeal is filed, the DRAT will issue a notice to the respondent, who is the other party to the dispute.
4. The respondent must file a reply to the appeal within a stipulated period of time. The reply must contain the facts and arguments in support of the respondent’s case. After this, the parties may submit written arguments or make oral submissions to the DRAT.
5. The DRAT then examines the evidence submitted by both parties and hears the arguments of both parties. Once the DRAT passes an order, it cannot be challenged in a court of law. The order of the DRAT can only be challenged through a judicial review.
6. The DRATs are a beneficial addition to the Indian legal system as they reduce the burden on the courts and expedite the recovery of loans from defaulters. They provide a speedy and cost-effective mechanism to resolve disputes regarding recovery of dues from banks and financial institutions.