Either party dissatisfied with an order of the Debts Recovery Tribunal, whether in a Section 17 Securitisation Application or an Original Application for recovery, may appeal to the Debts Recovery Appellate Tribunal. The process has its own timeline and requirements, distinct from proceedings before the DRT itself.
Step 1: Limitation
An appeal must generally be filed within 30 days of the DRT's order. This period can be extended by the DRAT for sufficient cause shown, but delay is not treated lightly.
Step 2: The Pre-Deposit Requirement
Where the appeal challenges an order relating to enforcement under SARFAESI, the appellant, other than the secured creditor, must ordinarily deposit a percentage of the amount in question as a condition of the appeal being entertained. This requirement is strictly applied and frequently the first issue the DRAT addresses.
Step 3: Filing and Grounds of Appeal
The appeal sets out the specific findings of the DRT being challenged, supported by the record from the proceedings below. New evidence is generally not introduced at this stage; the DRAT reviews the correctness of the DRT's order on the existing record.
Step 4: Hearing
Both parties are heard on the grounds raised. The DRAT can uphold, modify, or set aside the DRT's order, or remand the matter back to the DRT for fresh consideration on specific issues.
Step 5: Beyond the DRAT
An order of the DRAT can, in appropriate cases, be challenged before the High Court, though the scope for further appeal is narrow and courts are generally reluctant to reopen findings already tested at two tribunal levels.
What This Means Practically
A DRAT appeal is not a routine second attempt; it is a focused review of specific legal or factual errors. Appeals prepared around a genuine, well-documented ground succeed far more often than those filed simply to extend timelines.
Facing a recovery matter, or need panel counsel for one?
Speak directly with Advocate Hansal Shukla about your SARFAESI, DRT, or banking recovery matter.