What is a Debt Tribunal Appeal?

A Debt Tribunal Appeal is a legal process where borrowers or aggrieved parties challenge the decisions or recovery actions initiated by banks or financial institutions before the Debt Recovery Tribunal (DRT).

  • ✔ Filed when borrowers dispute recovery notices under the SARFAESI Act or loan defaults
  • ✔ Allows for legal defense against seizure of property, auction, or coercive recovery actions
  • ✔ Requires timely filing with valid grounds, evidence, and legal representation
  • ✔ Governed by the provisions of the Recovery of Debts and Bankruptcy Act, 1993

Filing a Debt Tribunal Appeal provides a fair legal opportunity to resolve disputes and protect your rights against wrongful or excessive recovery actions.

Types of Debt Tribunal Appeals

Based on Borrower's Legal Rights:

1. Appeal Against SARFAESI Action

Challenging actions like property seizure or auction taken by banks under the SARFAESI Act.

2. Appeal Against DRT Order

Filing an appeal in DRAT (Appellate Tribunal) if aggrieved by an order passed by the DRT.

3. Appeal by Guarantor

Filed by guarantors disputing the recovery or attachment of their property by creditors.

4. Appeal Against Possession Notice

Challenging the 13(4) notice served by secured lenders under SARFAESI before DRT.

Based on Who Files the Appeal:

1. Borrower-Initiated Appeals

Filed by borrowers who are aggrieved by actions or decisions of banks or DRT orders.

2. Financial Institution Appeals

Filed by banks or NBFCs if DRT’s decision is in favor of the borrower or delays recovery.

Key Points to Remember:
  • Debt Tribunal Appeals are time-sensitive and must follow proper legal format.
  • Supporting documents, grounds of appeal, and legal representation are crucial.
  • Appeals must comply with the Recovery of Debts and Bankruptcy Act and SARFAESI rules.