What is the summary procedure followed by DRT in a bank recovery suit?

Question

My bank has filed an Original Application before the DRT for loan recovery and I want to understand how the tribunal's summary trial process works. I would rather settle this without going to court if the law allows it, but I need to know my rights before I sign anything. Please tell me what to do first and what document to keep.

MyVakeel Legal Desk · Accepted Answer

Under Indian law, Recovery of Debts and Bankruptcy Act 1993, Section 19 is the starting point for this banking law question. What follows is the position in substance, together with the steps that usually make the difference in practice.

Section 19 requires the bank to file an Original Application with full particulars of the debt, and the defendant must file a written statement, often within 30 days.

Section 22 dispenses with strict Civil Procedure Code rules, empowering DRT to devise its own procedure guided by principles of natural justice for speedy disposal.

DRT can pass interim orders including attachment before judgment if it believes the borrower may dispose of assets to defeat recovery.

Final orders of DRT operate as a recovery certificate executable by the Recovery Officer, who can attach and sell properties without a separate civil suit.

Cross-claims or counter-claims by the borrower against the bank, such as for deficiency of service, can be raised within the same proceeding.

What this means for you: 1) File a detailed written statement within the time granted, addressing each averment in the bank's application; 2) Raise any counter-claim regarding excess interest, wrongful charges or deficient service at the earliest stage; 3) Attend all hearings since ex-parte orders can be passed for non-appearance; 4) Challenge the final recovery certificate before DRAT if factual or legal errors exist.

Where the facts are disputed, what usually decides a drt original application matter is the paper trail — dated complaints, acknowledgments and written replies under Recovery of Debts and Bankruptcy Act 1993, Section 19. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in banking law.