Application to DRT (Debt Recovery Tribunal): Fees, Procedure, and Documents Required

Application to DRT (Debt Recovery Tribunal): Fees, Procedure, and Documents Required

Filing an application with the Debt Recovery Tribunal (DRT) involves several steps, including understanding the fees, procedure, and required documents. Here’s a comprehensive guide:

Fees for Filing an Application:

Filing Fee: The exact fee may vary based on the nature and amount of the claim. It’s advisable to check with the specific DRT branch where you intend to file your application.
Legal Charges: You may also incur legal charges if you choose to engage a lawyer to represent you in the proceedings.

Procedure for Filing an Application:

Identification of Jurisdiction: Determine the jurisdiction of the DRT where you need to file your application based on the location of the bank or financial institution and the nature of your claim.
Preparation of Application: Prepare your application along with all necessary documents. Ensure that your application clearly states the facts of the case and the relief sought.
Submission of Application: Submit your application along with the required fees and documents to the designated DRT branch within the jurisdiction.
Service of Notice: Upon acceptance of your application, the DRT will issue notices to the concerned parties, including the bank or financial institution against whom the claim is made.
Case Hearing: Attend all scheduled hearings before the DRT and present your case with supporting evidence.
Judgment and Execution: Await the judgment of the DRT. If the judgment is in your favor, take necessary steps to execute the order and recover the debt.

Documents Required for Filing an Application:

Application Form: Fill out the prescribed application form provided by the DRT.
Proof of Debt: Any documents or evidence supporting your claim of debt owed by the bank or financial institution.
Identity Proof: Provide proof of your identity, such as Aadhar card, passport, or driver’s license.
Address Proof: Submit proof of your address, which could be a utility bill, rental agreement, or any government-issued document.
Legal Documents: Any legal documents relevant to the case, including loan agreements, promissory notes, and correspondence with the bank or financial institution.
Evidence: Any other evidence supporting your claim, such as bank statements, invoices, or receipts.
Affidavit: You may need to submit an affidavit affirming the truthfulness of the information provided in your application.

It’s essential to follow the specific guidelines and procedures laid down by the DRT in your jurisdiction to ensure the smooth processing of your application. Additionally, seeking legal advice or assistance can be beneficial in navigating the complexities of debt recovery proceedings before the tribunal.

Here’s a breakdown of the Debt Recovery Tribunals (DRTs) and Debt Recovery Appellate Tribunals (DRATs) in India:

Debt Recovery Tribunals (DRTs):

Establishment: Set up in 1993 under the Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI Act), 1993.
Objective: Resolve pending money recovery cases of banks against defaulters and vice versa.
Types of Applications: Various types including OA (Original Application), SA (Securitization Application), IA (Interlocutory Application), MA (Miscellaneous Application).
Jurisdiction: Matters related to debt recovery, where either party is a bank or financial institution, involving amounts exceeding 20 lakhs.
Powers: Equivalent to those of a civil court.
Branches: Currently, there are 39 DRTs across India.

Debt Recovery Appellate Tribunals (DRATs):

Establishment: Also established under the RDDBFI Act, 1993.
Objective: Provide expeditious adjudication and recovery of debts due to Banks and Financial Institutions.
Appeals: Parties aggrieved by orders of the DRT can appeal to the DRAT.
Condition for Appeal: DRATs require the appellant to deposit 75% of the amount of debt determined by the DRT before entertaining the appeal.
Branches: There are a total of 5 DRATs in the country.

Branches of DRTs and DRATs:

DRTs: There are 39 DRTs spread across various regions in India.
DRATs: There are 5 DRATs which handle appeals against the judgments of respective DRTs.

Appeals Process:

Filing an Appeal: The aggrieved party files an appeal against the DRT’s order in the respective DRAT.
Deposit Requirement: Before the appeal is entertained, the appellant must deposit 75% of the debt amount as determined by the DRT.
Adjudication: The DRAT reviews the appeal and makes a decision based on the merits of the case.
Judgment: The DRAT issues a judgment, which may uphold, modify, or reverse the decision of the DRT.
Enforcement: The parties must comply with the orders issued by the DRAT, similar to those of the DRT.

Understanding the structure and procedures of both DRTs and DRATs is essential for parties involved in debt recovery matters, as it enables them to navigate the legal process effectively.

Here’s a detailed overview of the process of applying to the Debt Recovery Tribunal (DRT) under the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, along with the required documents and fees:

Documents Required for Application to DRT:

Statement of Debt: Details of the debt owed by the respondent and the circumstances under which the debt became due.
Supporting Documents: Any documents relied upon by the applicant and mentioned in the application.
Application Fee: Payment in the form of a crossed Bank Draft or Indian Postal Order representing the application fee.
Index of Documents: A list/index of the documents to be produced along with the application.

Fees for Filing Application:

The filing fee for an application to the DRT depends on the amount involved in the case.
The tribunal levies a fixed percentage of the amount as the fee. However, this fee may be subject to adjustment by the tribunal if necessary.

Process of Application to DRT:

Filing the Original Application (OA):
- The applicant initiates the process by filing the Original Application (OA) to the DRT.
- The OA must include details of the debt and other relevant information about the case.
Inspection of Application:
- The OA is received by the registrar of the DRT.
- The registrar inspects the application and assigns a serial number to track the application’s status.
Summon to the Respondent:
- The OA, with the assigned serial number, is then sent to the Presiding Officer of the DRT.
- The Presiding Officer issues a show-cause notice to the respondent, informing them of the application filed against them.
Submission of Affidavit to Presiding Officer (PO):
- Both parties (applicant and respondent) present their arguments and supporting documents in the form of an affidavit to the Presiding Officer.
- The Presiding Officer examines all arguments and evidence presented before making a final decision.
Issuance of Final Order by the Presiding Officer:
- The Presiding Officer releases the final order based on the arguments and evidence presented.
- If the judgment favors the bank, the Presiding Officer orders the registrar to issue a Recovery Certificate to the recovery officer.
- If the judgment favors the borrower, the case is dismissed.
Appeal to Debt Recovery Appellate Tribunal (DRAT):
- If any party is dissatisfied with the decision, they can file an appeal to the Debt Recovery Appellate Tribunal (DRAT) against the decision of the DRT.

Following these steps and ensuring all necessary documents are submitted is crucial for a smooth application process to the Debt Recovery Tribunal.

What is the Debt Recovery Tribunal (DRT)? How does the Debt Recovery Tribunal work? Who can file applications in DRT? Is the Debt Recovery Tribunal a statutory body? Can NBFC file OA in DRT? Can a borrower approach DRT?

The Debt Recovery Tribunal (DRT) is a special tribunal established under the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993. Its primary function is to provide a forum for the expeditious adjudication and recovery of debts due to banks and financial institutions. DRTs have been set up to address the mounting cases of non-recovery of loans by banks and financial institutions.

How does the Debt Recovery Tribunal work?

Filing of Applications: Parties, including banks, financial institutions, or borrowers, file applications to the DRT seeking recovery of debts or defending against claims.
Adjudication: The DRT examines the evidence presented by both parties and makes a decision based on the merits of the case.
Enforcement: If the DRT rules in favor of the applicant (usually the bank or financial institution), it issues a Recovery Certificate, enabling the recovery officer to take appropriate measures to recover the debt.

Who can file applications in DRT?

Applications can be filed by:

Banks
Financial Institutions
Securitization Companies
Asset Reconstruction Companies
Borrowers who wish to challenge the actions of banks or financial institutions

Is the Debt Recovery Tribunal a statutory body?

Yes, the Debt Recovery Tribunal is a statutory body established under the RDDBFI Act, 1993. It has been given specific powers and functions under this legislation.

Can NBFC file OA in DRT?

Yes, Non-Banking Financial Companies (NBFCs) can file an Original Application (OA) in the Debt Recovery Tribunal for the recovery of debts due to them. The RDDBFI Act covers both banks and financial institutions, which include NBFCs.

Can a borrower approach DRT?

Yes, borrowers can approach the Debt Recovery Tribunal to defend against claims made by banks or financial institutions. They can file applications challenging the actions of these institutions or seeking relief from debt recovery proceedings. DRT provides a platform for borrowers to present their case and seek a fair resolution to debt-related disputes.

Your comprehensive breakdown of applying to the Debt Recovery Tribunal (DRT) is thorough and provides valuable insight into the process, fees, and required documents. Here’s a summary of the key points:

Fees:

Original Application (OA):
- Up to Rs. 10 lakhs: Rs. 12,000
- Above Rs. 10 lakhs: Rs. 12,000 + Rs. 1,000 for every additional lakh (up to a maximum of Rs. 1,50,000)
Review Application: 50% of the OA fee
Interlocutory Application (IA): Rs. 250
Vakalatnama: Rs. 5
Appeal against DRT order:
- Less than Rs. 10 lakhs: Rs. 12,000
- Rs. 10 lakhs to Rs. 30 lakhs: Rs. 20,000
- Above Rs. 30 lakhs: Rs. 30,000

Procedure:

Draft the Original Application (OA): Include necessary details about the applicant, defendant, loan agreement, amount due, grounds for recovery, and relief sought.
Pay the application fee: Using challan, bank draft, or online payment through the e-DRT portal.
File the OA: Physically at the Registrar’s office or electronically through the e-DRT portal (mandatory for cases over Rs. 100 crore).
Serve the OA on the defendant: DRT will issue summons to the defendant.
Hearing and proceedings: DRT will hear arguments, examine evidence, and may conduct multiple hearings.
Order: DRT will issue an order directing repayment of debt or dismissing the application.

Documents Required:

Original Application (OA) in Form O.A. 1
Proof of payment of application fee
Loan agreement and related documents
Proof of borrower’s address and identity
Any other supporting documents
Vakalatnama if engaging a lawyer

Additional Points:

Consult with a lawyer specializing in DRT matters for proper guidance.
Track the status of your application online through the e-DRT portal.
Refer to the DRT website and user manual for detailed information and forms.

This overview provides a clear understanding of the application process, ensuring individuals are well-equipped to navigate the complexities of debt recovery through the DRT.

The Debt Recovery Tribunal (DRT) plays a crucial role in facilitating the speedy recovery of debts owed to banks and financial institutions by their customers. Here’s a detailed examination of the Debt Recovery Tribunal Act, covering its importance, applicability, establishment, composition, documents required, application fee, and procedures involved:

Importance of DRT:

The primary objective of DRT is to expedite the recovery of funds owed to banks and financial institutions by borrowers.
It focuses on settling cases related to the restoration of unpaid amounts, especially Non-Performing Assets (NPAs) declared by banks under RBI guidelines.
DRT has the powers vested with a District Court and ensures the fast implementation of final orders.

Applicability of the Act:

The Debt Recovery Tribunals Act applies to the entire country except for the State of Jammu and Kashmir.
It applies when the amount of debt due is not less than Rs. 10,00,000/-
The original application for debt recovery can only be filed by banks and financial institutions.

Establishment of Tribunal and Appellate:

The Central Government has the authority to establish one or more Debt Recovery Tribunals.
These tribunals exercise jurisdiction based on areas specified by the Central Government.

Composition of DRT:

DRT is presided over by a qualified individual, usually a District Judge, appointed by the Central Government.
The Central Government may also authorize other presiding officers.

Documents Required:

The application should include a statement showing details of the debt due and circumstances under which it became due.
Any documents relied upon by the applicant and those mentioned in the application.
Details of the application fee payment.
Index of the documents to be produced.

Application Fee:

The fee can be paid through a demand draft or Indian Postal Order drawn in favor of the Registrar.
The fee depends on the nature of the application and the amount of debt involved.

DRT Process:

The procedure involves filing the application with the Registrar, presenting it in the prescribed format, and paying the application fee.
The application is presented either in person or through registered post.
After verification, the Registrar issues the Original Application (OA) number and summons to the defendants.
Further proceedings include evidence submission, cross-examination, and arguments.
The Recovery Certificate is issued by the Presiding Officer, which is executed by the Recovery Officer.

Appeal Against Recovery Officer:

Appeals against Recovery Officer orders can be made to DRT within 30 days from the date of the order.
The appeal against the DRT’s judgment can be made to the Debt Recovery Appellate Tribunal (DRAT) within 45 days.
A deposit, typically 50% of the fund, is required for filing an appeal, which may be reduced by the Chairperson.

Understanding the procedures and requirements outlined by the Debt Recovery Tribunal Act is crucial for all parties involved in debt recovery proceedings. It ensures a fair and efficient resolution of debt-related disputes in the banking and financial sector.

Debt Recovery Tribunal (DRT):

What it is:

A quasi-judicial body set up under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 [Recovery of Debts Due to Banks and Financial Institutions Act, 1993].
Established to expedite recovery of loans for banks and financial institutions.

How it works:

Banks and financial institutions file applications (OA – Original Applications) with the DRT for recovery of dues.
DRT hears both sides and issues orders for repayment.
Recovery officers assist DRT in enforcing these orders.

Who can file applications:

Banks and financial institutions

Statutory body:

Yes, established by an Act of Parliament.

NBFCs filing OA:

No, currently NBFCs (Non-Banking Financial Companies) cannot file applications in DRT. NBFCs meeting eligibility criteria (assets of ₹100 crore+ and secured debt of ₹20 lakh+) can file applications with DRTs for loan recovery.

Borrowers approaching DRT:

Borrowers cannot directly initiate cases in DRT. However, they can contest the claims made by the bank and present their arguments.

In summary:

DRT acts as a fast-track court for banks and financial institutions to recover loans exceeding a specific amount. It’s not for borrowers to initiate action, but they can defend themselves when a bank files a case.

That’s a very comprehensive breakdown of the Debt Recovery Tribunal (DRT) process! You’ve covered everything from the fees involved to the documents required and the different stages of the application process. Here are some key takeaways:

DRT for Banks and Financial Institutions: Primarily designed to help banks and financial institutions recover debts exceeding a specific amount.
Borrower’s Role: Borrowers cannot directly file cases but can contest claims and defend themselves during proceedings.
Application Process: Involves filing an Original Application (OA), paying fees, attending hearings, and potentially appealing the decision.
Documents Required: Proof of debt, loan agreements, identity proofs, and other supporting documents.
NBFCs and DRT: Currently, NBFCs cannot file applications with DRT. NBFCs meeting eligibility criteria (assets of ₹100 crore+ and secured debt of ₹20 lakh+) can file applications with DRTs for loan recovery.

Regarding NBFCs filing Original Applications (OAs) in Debt Recovery Tribunals (DRTs), it’s important to note the eligibility criteria and process:

Eligibility Criteria for NBFCs to File OAs in DRTs:

According to recent amendments, NBFCs meeting specific criteria are eligible to file OAs in DRTs for loan recovery:

Minimum Asset Size: The NBFC should have assets worth ₹100 crores or more.
Minimum Secured Debt: The NBFC should have secured debts amounting to ₹20 lakhs or more.

Process for NBFCs to File OAs in DRTs:

Assessment of Eligibility: NBFCs need to ensure they meet the eligibility criteria before proceeding with filing an OA in DRT.
Preparation of OA: Prepare the OA with all necessary details regarding the debt owed, supporting documents, and other relevant information.
Payment of Fees: Pay the required fees for filing the OA, which may vary based on the amount of debt involved and other factors.
Submission of OA: Submit the OA along with the requisite fees and documents to the designated DRT branch within the jurisdiction.
Follow-Up: Stay updated on the progress of the case by attending hearings and providing any additional information or documents as required.
Enforcement of Order: If the DRT issues a favorable judgment, take necessary steps to enforce the order and recover the debt owed.

By following these steps and ensuring compliance with the eligibility criteria and procedural requirements, NBFCs can file OAs in DRTs for the recovery of debts owed to them.

DRT Court Fees Calculator DRT Court Fee Chart, DRAT Court Fees Calculator DRAT Court Fee Lawyers

What is the fee for filing an Original Application (OA) before the Tribunal?

The fee payable as per Rule 7 of the Debts Recovery Tribunal (Procedure) Rules, 1993 is Rs.12,000/- where an amount of debt due is Rs.10.00 lakhs, Rs.12,000 plus Rs.1000 for every one lakh of debt due or part thereof in excess of Rs.10.00 lakhs subject to a maximum of Rs.1,50,000/- where an amount of debt due is above Rs.10.00 lakhs.

What is the fee for Review Application?

The fee for Review Application is fifty per cent of the fee paid for the OA.

What is the fee for Interlocutory Application?

The fee for filing Interlocutory Application (IA) is Rs.250/-.

What is the fee for Vakalatnama?

The fee for filing Vakalatnama is Rs.5/-.

What is the fee for an appeal against the order of the Recovery Officer?

Rs.12,000/- if the amount appealed against is less than Rs.10 lakhs.

Rs.20,000/- if the amount appealed against is Rs.10 to 30 lakhs.

Rs.30,000/- if the amount appealed against is more than 30 lakhs.

What is the fee for perusal of documents?

Rs.100/- per case.

What is the fee payable for certified copies of documents?

Rs.5 per page.

Debts Recovery Tribunal (Procedure) Rules, 1993

7. Application Fee. – (1) Every Application under section 19(1), or section 19(2), or section 19(8), or section 30(1) of the Act, or interlocutory application or application for review of decision of the Tribunal shall be accompanied by a fee provided in the sub-rule (2) and such fee may be remitted through, a crossed Bank Demand Draft drawn on a bank or Indian Postal Order in favour of the Registrar of the Tribunal and payable at the place where the Tribunal is situated.

(2) The amount of fee payable shall be as follows: –

S. No.	Nature of Application	Amount of Fee Payable
1.	Application for recovery of debts due under section 19(1) or section 19(2) of the Act:
	(a) Where amount of debt due is Rs.10 lakhs	Rs. 12000/-
	(b) Where the amount of debt due is above Rs.10 lakhs	Rs.12000/- plus Rs. 1000/- for every one lakh rupees of debt due or part thereof in excess of Rs.10/- lakhs, subject to a maximum of Rs.1,50,000/-.
2.	Application to counter claim under section 19(8) of the Act:
	(a) Where the amount of claim made is upto Rs.10 lakhs	Rs. 12000/-
	(b) Where the amount of claim made is above Rs.10 lakhs	Rs.12000/- plus Rs.1000/- for every one lakh rupees or part thereof in excess of Rs. 10/- lakhs, subject to a maximum of Rs.1,50,000/-
3.	Application for Review including review application in respect of the counter claim:
	(a) against an interim order	Rs. 125
	(b) against a final order excluding review for correction of clerical or arithmetical mistakes	50% of fee payable at rates as applicable on the applications under section 19(1) or 19(8) of the Act, subject to a maximum of Rs.15,000/-
4.	Application for interlocutory order	Rs. 250/-
5.	Appeals against orders of the Recovery Officer If the amount appealed against is:
	(i) Less than Rs.10 lakhs	Rs. 12000/-
	(ii) 10 lakhs or more but less than Rs. 30 lakhs	Rs. 20,000/-
	(iii) 30 lakhs or more	Rs. 30,000/-
6.	Vakalatnama	Rs. 5/-]

The Debts Recovery Appellate Tribunal (Procedure) Rules, 1994

8. Fee. – (1) Every memorandum of appeal under section 20 of the Act shall be accompanied with a fee provided in sub-rule (2) and such fee may be remitted either in the form of crossed demand draft drawn on a nationalised bank in favour of the Registrar and payable at the station where the Registrar’s officer is situated or remitted through a crossed Indian Postal Order drawn in favour of the Registrar and payable in Central Post Office of the station where the Appellate Tribunal is located.

(2) The amount of fee payable in respect of appeal under section 20 shall be as follows:-

S. No.	Amount of debt due	Amount of fees payable
1	Less than Rs. 10 lakhs	Rs.12,000
2	Rs. 10 lakhs or more but less than Rs. 30 lakhs	Rs. 20,000
3	Rs. 30 lakhs or more	Rs. 30,000

The Security Interest (Enforcement) Rules, 2002

13. Fees for applications and appeals under section 17 and 18 of the Act.- (1) Every application under sub section (1) of section 17 or an appeal to the Appellate Tribunal under sub-section (1) of section 18 shall be accompanied by a fee provided in the sub-rule (2) and such fee may be remitted through a crossed demand draft drawn on a bank or Indian Postal Order in favour of the Registrar of the Tribunal or the Court as the case may be, payable at the place where the Tribunal or the Court is situated.

(2) The amount of fee payable shall be as follows:

S. No.	Nature of Application	Amount of Fee payable
1.	Application to a Debt Recovery Tribunal under sub-section (1) of section 17 against any of the measures referred to in sub-section (4) of section 13
	(a) Where the applicant is a borrower and the amount of debt due is less than Rs.10 lakhs	Rs. 500 for every Rs.1 lakh or part thereof
	(b) Where the applicant is a borrower and the amount of debt due is Rs. 10 lakhs and above	Rs. 5,000 + Rs. 250 for every Rs. 1 lakh or part thereof in excess of Rs. 10 lakhs subject to a maximum of Rs. 1,00,000
	(c) Where the applicant is an aggrieved party other than the borrower and where the amount of debt due is less than Rs.10 lakhs	Rs. 125 for every Rupees One lakh or part thereof
	(d) Where the applicant is an aggrieved party other than the borrower and where the amount of debt due is Rs.10 lakhs and above	Rs. 1,250 + Rs. 125 for every Rs. 1 lakh or part thereof in excess of Rs. 10 lakhs subject to a maximum of Rs. 50,000
	(e) Any other application by any person	Rs. 200
2.	Appeal to the Appellate Authority against any order passed by the Debt Recovery Tribunal under section 17	Same fees as provided at clauses (a) to (e) of serial number 1 of this rule]

Debt Recovery Tribunals, DRT Structure and Processes

The Debts Recovery Tribunal (DRT) is a specialized forum established in India for the speedy recovery of debts due to banks and financial institutions. The DRTs operate under the jurisdiction of the Debts Recovery Appellate Tribunal (DRAT) and the jurisdiction of the High Court.

The DRT has the following structure:

President: A judicial officer appointed by the central government
Members: Administrative and technical members appointed by the central government

The DRT process is as follows:

Filing of a claim: A bank or financial institution can file a claim in the DRT if they are unable to recover a debt from a borrower.
Issuance of summons: Upon the filing of a claim, the DRT will issue a summons to the borrower to appear before the tribunal and contest the claim.
Hearing: The DRT will hold a hearing, where both the bank or financial institution and the borrower can present their case and evidence.
Order: Based on the hearing, the DRT will issue an order, which could be in favor of the bank or financial institution, directing the borrower to repay the debt, or in favor of the borrower, dismissing the claim.
Appeal: Either party can file an appeal against the DRT order in the DRAT within a specified time frame.

Note: The DRT process is governed by the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.

Debt Recovery Tribunals Processes of Recovery

The process of recovery through Debts Recovery Tribunals (DRTs) in India involves the following steps:

Filing of a claim: The bank or financial institution files a claim in the DRT for recovery of a debt.
Issuance of summons: The DRT issues a summons to the borrower, directing them to appear before the tribunal and contest the claim.
Hearing: Both the bank or financial institution and the borrower present their case and evidence during the hearing.
Order: Based on the hearing, the DRT issues an order, directing the borrower to repay the debt or dismissing the claim.
Execution of the order: If the order is in favor of the bank or financial institution, they can move forward with the execution of the order, which involves recovering the debt from the borrower. This can be done through various methods such as attachment of assets, sale of assets, or garnishing of wages.
Appeal: Either party can file an appeal against the DRT order in the Debts Recovery Appellate Tribunal (DRAT) within a specified time frame.

Note: The DRT process of recovery is governed by the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and is aimed at providing a speedy and efficient mechanism for the recovery of debts by banks and financial institutions.

Recovery Process & Enforcement Of Security Interest In India

The recovery process and enforcement of security interest in India is governed by the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

The process of recovery and enforcement of security interest under SARFAESI Act is as follows:

Issuance of Demand Notice: The bank or financial institution issues a demand notice to the borrower, informing them of their default and giving them an opportunity to pay the overdue amount within 60 days.
Issuance of Notice of Intention to Enforce Security Interest (NIESI): If the borrower does not pay the overdue amount, the bank or financial institution can issue a NIESI, informing the borrower of their intention to enforce the security interest.
Attachment of Assets: The bank or financial institution can attach the assets pledged as security for the loan, such as immovable property, machinery, or stock-in-trade.
Sale of Assets: The attached assets can be sold through public auction or private treaty to recover the overdue amount.
Appointment of Authorized Officer: The bank or financial institution can appoint an authorized officer to take possession of the attached assets and manage the sale process.
Appeal: The borrower can file an appeal against the NIESI or the sale of assets in the Debts Recovery Tribunal (DRT) within 45 days of receipt of the NIESI.

Note: The SARFAESI Act provides a simplified and expeditious mechanism for banks and financial institutions to recover their debts and enforce their security interests without the intervention of courts.

Debts Recovery Tribunal (DRT) – Application Procedure

The procedure for filing a claim in the Debts Recovery Tribunal (DRT) in India is as follows:

Preparation of the claim: The bank or financial institution preparing the claim must ensure that they have all the necessary documents, including the loan agreement, security documents, and evidence of default by the borrower.
Filing of the claim: The bank or financial institution files the claim in the DRT where the borrower resides or carries on business.
Payment of fees: The bank or financial institution must pay the prescribed fees for filing the claim, which can vary based on the amount of the claim.
Issuance of Summons: Upon filing the claim, the DRT will issue a summons to the borrower, directing them to appear before the tribunal and contest the claim.
Service of Summons: The summons must be served on the borrower in a manner specified by the DRT rules.
Hearing: The DRT will hold a hearing, where both the bank or financial institution and the borrower can present their case and evidence.
Order: Based on the hearing, the DRT will issue an order, which could be in favor of the bank or financial institution, directing the borrower to repay the debt, or in favor of the borrower, dismissing the claim.

Note: The DRT process is governed by the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and is aimed at providing a speedy and efficient mechanism for the recovery of debts by banks and financial institutions.