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ACT(2002)
DEBT RECOVERY TRIBUNALS (DRT),
THE SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT(SARFAESI ACT 2002)
WHAT ARE TRIBUNAL COURTS?
Tribunal Courts Have Been Established Under (The Tribunals,Courts and Enforcement
Act 2007) in UK.
Tribunalization in India is done in order to Implement Administrative Law in India.
Tribunal is:- (1) A Body of Administrative Character. (2) Power With Judicial Powers to
Adjudicate on Question of Law or Fact that Effects Rights of Citizens. (3) Has Judicial or
Quasi Judicial Functions. (4) Work in a Judicial Manner.
Since Tribunals Follow the Rule of Natural Justice, They do Not follow The Indian Evidence
Act, 1872 That is Commonly Followed in Courts.
NECESSITY
The Debts Recovery Tribunals (DRTs) and Debts Recovery Appellate Tribunal (DRATs)
were established under the Recovery of Debts Due to Banks and Financial
Institutions Act (RDDBFI Act), 1993 with the specific objective of providing expeditious
adjudication and recovery of debts due to Banks and Financial Institution. Presently 38
DRT's and 5 DRAT's are functioning in India.
DRT & DRAT
The Debts Recovery Tribunals (DRTs) and Debts Recovery Appellate Tribunal (DRATs)
were established under the Recovery of Debts Due to Banks and Financial
Institutions Act (RDDBFI Act), 1993 with the specific objective of providing expeditious
adjudication and recovery of debts due to Banks and Financial Institution. Presently 38
DRT's and 5 DRAT's are functioning in India.
HISTORY OF DRAT
DRTs Have Been Established by The Govt. of India Under an Act of Parliament (Act 51 of
1993) for Expeditious Adjudication and Recovery of Debts Due to Banks and Financial
Institution.
WHAT IS DRAT
Debt Recovery Appellate Tribunal is The Appellate Authority for Appeals Filed Against the
Proceedings Initiated by Secured Creditors Under Sub-Section (4) of Section 13 of the
Securitization and Reconstruction of Financial Assets and Enforcements of Security
Interest Act 2002
SARFAESI ACT 2002
Under this act secured creditors Have Many Right for Enforcement of Security Interest u/s 13 of
SARFAESI ACT, 2002
If Borrower of any Financial Assistance Makes any Default in Repayment of Loan or Any Installment and
his Account is Classified as NON PERFORMING ASSET by secured creditor, Then Security
Creditors may Require Before Expiry of Period of Limitation by Written Notice to the Borrower for
Repayment of due in Within 60 days by Clearly Stating Amount due and Intention of Enforcement.
Where He does not Discharge Dues in full within 60 days, THEN WITHOUT INTERVENTION
OF ANY COURT OR TRIBUNAL Secured Creditors may take Possession in Secured Assets, or
Takeover Management of Business of Borrower or Appoint Manager for Secured Asset or Without Taking
any of These Action may Also Proceed Against Guarantor or Sell the Pledged Asset if Any.
BRIEF OF SARFAESI ACT, 2002