When a bank seeks to recover a debt, it does not file a plaint before the ordinary civil court. Instead, it files an Original Application (OA) before the Debts Recovery Tribunal (DRT) under the Recovery of Debts and Bankruptcy Act, 1993. The DRT is the specialised forum for adjudicating and recovering debts owed to banks and financial institutions. An Original Application (OA) is broadly comparable to a plaint in civil proceedings. It sets out the bank’s claim, the amount allegedly due, the security and documents relied upon, and the relief sought. Understanding what a DRT Original Application is, what it must contain, and how the DRT recovery process works is essential for anyone facing bank debt recovery proceedings.

The statutory basis

Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 — the Act still commonly cited by its earlier name, the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 — provides that where a bank or financial institution has to recover any debt from any person, it may make an application to the Tribunal within whose jurisdiction the cause of action arises, or the defendant resides or carries on business, as the section specifies.

Two jurisdictional limits apply before the section is even reached. Only a bank or financial institution as defined in the Act may apply — an ordinary trade creditor cannot. And Section 1(4) sets a pecuniary floor: the Act does not apply where the amount of debt due is less than ten lakh rupees, or such other amount, not less than one lakh rupees, as the Central Government may specify. By notification S.O. 4312(E) dated 6 September 2018, that floor was raised to twenty lakh rupees. Claims below it go to the civil court.

What does a DRT original application contain?

To file a DRT Original Application (OA), the bank or financial institution must use the prescribed form under the Debts Recovery Tribunal (Procedure) Rules, 1993, submit the required supporting documents, and pay the applicable fee based on the amount of debt claimed.

Its substance mirrors what a plaint would contain: the parties, including guarantors and mortgagors; the facilities sanctioned and the documents executed; the security created; the operation of the account and the classification as a non-performing asset; the amount claimed with a statement of account showing how it is computed; the cause of action and the date it arose; the basis of jurisdiction, both territorial and pecuniary; and the relief sought, typically a recovery certificate for the amount claimed with interest and costs, and sale of the secured assets.

An application for interim relief frequently accompanies it — for attachment before judgment, appointment of a receiver, or an injunction restraining the defendant from transferring assets.

How the proceeding runs

The Tribunal issues summons. The defendant files a written statement within the period allowed, and may raise a counter-claim or set-off, which the Tribunal deals with in the manner the Act provides.

The Tribunal is not bound by the Code of Civil Procedure, 1908. It is guided by the principles of natural justice and, subject to the Act and the rules, has the power to regulate its own procedure. For specified purposes it has the same powers as a civil court under the Code — summoning witnesses, requiring production of documents, receiving evidence on affidavit, and the like.

Evidence is ordinarily on affidavit, with cross-examination permitted where the Tribunal considers it necessary. The Act contemplates expeditious disposal, and sets out the timeframe within which the Tribunal is to endeavour to dispose of the application.

The recovery certificate

If the Tribunal is satisfied that the debt is due, it issues a certificate of recovery under Section 19 specifying the amount payable, signed by the Presiding Officer, and forwards it to the Recovery Officer.

This is the feature that distinguishes DRT practice from civil litigation. In a civil court, a decree must be executed through a separate execution proceeding under Order XXI of the Code. Under the RDB Act, execution passes to a dedicated official — the Recovery Officer — who has a statutory arsenal: attachment and sale of movable and immovable property, arrest and detention, and appointment of a receiver, in the manner the Act and the Second Schedule to the Income-tax Act, 1961 provide as applied by the Act.

An order of the Recovery Officer is appealable to the Tribunal itself under Section 30, within thirty days from the date on which a copy of the order is issued, and that appeal carries its own deposit requirement under Section 30A. Challenges to an attachment, a sale proclamation or the conduct of an auction therefore belong before the Tribunal in the first instance, not before the Appellate Tribunal.

How to Appeal a DRT Order to the DRAT

An order of the Tribunal is appealable to the Debts Recovery Appellate Tribunal under Section 20, within the period that section prescribes, running from receipt of a copy of the order, with power to condone delay on sufficient cause shown.

For a borrower, the appeal carries a pre-deposit condition under Section 21 that is frequently decisive, and which is examined separately.

The relationship with SARFAESI

A bank may proceed under both statutes in respect of the same debt, and often does.

Under the RDB Act, the bank is the applicant: it files the OA, obtains adjudication, and executes through the Recovery Officer. Under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the bank enforces its security itself without approaching any forum first, and the borrower becomes the applicant if it wishes to contest, by way of an application under Section 17.

The two run in parallel. A borrower defending an OA should not assume that the enforcement track has stopped, and a borrower contesting SARFAESI measures should not assume the OA has been abandoned.

Common Defences Against a DRT OA

Legal Information Disclaimer

This article is published for general legal information and educational purposes only. It reflects the position of Indian law as researched up to 10 August 2026 and may not account for subsequent amendments, notifications, rule changes or judicial developments. It is not legal advice, does not take into account any individual’s particular facts or circumstances, and no advocate-client relationship arises from reading it. Outcomes in litigation depend on the specific facts of each case and on procedural requirements in force at the relevant time. Readers dealing with an actual dispute should obtain independent professional advice from a qualified advocate of their own choosing before acting on any information contained here.

Sources / Authorities

• Recovery of Debts and Bankruptcy Act, 1993 (Act 51 of 1993) — Sections 1(4), 19, 20, 21, 22, 24, 25 to 30 and 30A — India Code, https://www.indiacode.nic.in/bitstream/123456789/1775/1/AArecovery1993__51.pdf
• Notification S.O. 4312(E) dated 6 September 2018, Ministry of Finance, Department of Financial Services — pecuniary floor raised to twenty lakh rupees
• Debts Recovery Tribunal (Procedure) Rules, 1993
• Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 — Section 17 — India Code, https://www.indiacode.nic.in/handle/123456789/2042
• Code of Civil Procedure, 1908 — Order XXI
• Limitation Act, 1963

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