What Is The Full Form Of DRT In Law?

DRT full form in law is Debt Recovery Tribunal. This is a special court set up under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. Its primary role is to assist in speedy decision-making for the collection of money, which is owed to banks and financial institutions. The DRT provides a place for these institutions to claim their dues quickly, which would otherwise take a long time in regular civil courts.

Debt Recovery Tribunal Summary:

The DRT is important for quickly solving disputes about money owed to banks and financial institutions. It helps in getting faster solutions and managing bad debts more effectively in the finance sector.

Legal Consequences and Roles:

DRTs were set up since the usual Civil Court System was working at a snail’s pace, where cases related to Debt Recovery used to drag on for years. They are the authority, in fact, to issue orders of debt collection and decide on applications by banks and financial institutions regarding the indebted persons. The Tribunal is not bound by the strict rules which regulate the proceedings in civil courts, but it must work fairly and reasonably. This is to say that it makes the process smooth. As far as the jurisdiction of DRTs is concerned, it can include all the parties to the dispute in which the amount of the dispute exceeds Rs. 20,00,000. At present, there are 39 DRTs and Debt Recovery Appellate Tribunals (DRATs) across India. The decisions by the DRTs can be appealed to the DRATs.