Under Section 3 of the Recovery of Debts Due to Banks and Financial Institutions Act of 1993, the Debts Recovery Tribunal was established. The DRT's primary function is to accept claim requests from banks and other financial institutions on their noncompliant borrowers. It also serves as the SARFAESI Act's adjudicating body after that Act's implementation in 2002.
The DRT presently deals with both the SARFAESI act and the DRT act, whose goals are identical but their implementation methods differ. Debt Recovery Appellate Tribunal (DRAT) hears appeals about DRT orders. Banks may refer cases involving disputed loans above Rs 10 lakh to DRTs. There are 33 DRTs and 5 DRATs operating in the country's various regions at the moment. Six new DRTs were made possible by the government in 2014 in order to hasten the resolution of loan-related disputes.
Any matter that the DRT is processing is not subject to civil court review, and no court or body has the competence or jurisdiction to handle any type of debt collection involving sums greater than Rs. 10 lakh (Jurisdiction of the DRT). According to Articles 226 and 227 of the Constitution, the High Court and Supreme Court have jurisdiction.
