RDDBFI Act - 1993
RDDBFI Act - 1993
The Recovery of Debts Due to Banks and Financial Institutions Act, 1993, renamed as the Recovery of Debts and Bankruptcy Act, 1993, provides for the establishment of Debt Recovery Tribunals (DRTs) and Debt Recovery Appellate Tribunals (DRATs) for the expeditious adjudication and recovery of debts.
Key Provisions:
Jurisdiction:
DRTs handle cases involving debts of ₹10 lakh and aboveowed to banks and financial institutions.
Procedure:
Creditors file an Original Application (OA) before the DRT for recovery. After adjudication, a Recovery Certificate is issued to authorize enforcement through the Recovery Officer.
Appeal:
Any aggrieved party may appeal the DRT’s order before the Debt Recovery Appellate Tribunal (DRAT)within 30 days.
Purpose:
To provide a specialized, time-bound, and less formal judicial mechanism for recovery of debts due to banks and financial institutions.