Loan Relief · 3 min read
Can DRT Grant Relief to Borrowers? Understanding Its Powers
DRT isn’t just for lenders—borrowers can also seek justice. Learn how the tribunal safeguards your rights and provides relief from unfair debt recovery practices.
In situations where rising debt defaults and tough recovery methods make many Indians feel trapped, the DRT helps provide a consistent process. It is not widely known that in DRT cases, borrowers can also access justice and solutions when needed. We will look at what the DRT can do, how borrowers can use this platform to their advantage, and how it is important for protecting borrower rights.
What Powers Does the DRT Have in Borrower Cases?
The RDDBFI Act, 1993, which created the Debt Recovery Tribunals, later allowed them to take on additional powers through the SARFAESI Act, 2002.
Tribunals in this category manage debt recovery claims made by banks and financial institutions against customers who owe more than ₹20 lakhs.
DRTs are mostly set up to benefit lenders by helping them speed up the process, but they can also listen to appeals and complaints from borrowers when lenders act forcefully or illegally.
If a borrower thinks the bank’s action under the Act, such as seizing assets or auctioning property, is uncalled for, they may apply under Section 17 of the Act.
If needed, the DRT can pause the recovery process, review the bank’s actions, or offer just solutions depending on the situation.
How Borrowers Can Seek Relief Through the DRT
Anyone who believes their creditor has acted unfairly — by overvaluing assets, seizing property without notice, or violating due process — may directly approach the DRT.
This applies especially in SARFAESI cases where banks or NBFCs acquire a secured asset by themselves.
If a borrower’s asset is taken without legal notice or proper valuation, they can contest it before the DRT. The tribunal will assess whether due process was followed and whether the borrower was given a reasonable response period.
If misuse of authority or violations are discovered, the DRT can issue injunctive relief, and in some cases, return the property.
The Procedure for Borrowers Seeking Relief from DRT
DRT proceedings are strictly procedural. To begin, the borrower must apply the relevant provision of the SARFAESI Act, including complete details.
This should be supported with documents such as:
● Loan agreements
● Copies of notices
● Evidence showing lapses by the lender
Once filed, the DRT issues a notice to the lender and schedules a hearing. Both parties are given a chance to present their case.
Although the DRT is a simplified version of civil court, legal counsel is recommended due to the technical nature of disputes.
Case Studies of Borrowers Who Received Relief from DRT
Several borrowers in India have successfully received relief via the DRT.
● In Maharashtra, a business owner’s property was seized without prior notice or valuation. After filing under Section 17, the DRT found non-compliance with SARFAESI norms and halted the auction. The borrower was then allowed to restructure the loan.
● In Delhi, the DRT intervened in a case where a bank-appointed recovery agent used unlawful intimidation tactics. The tribunal ordered the bank to assign a different recovery officer and ensured legal protocol was followed.
Conclusion: Leveraging DRT for Borrower Benefit
Though often viewed as a tool for lenders, the Debt Recovery Tribunal can also provide significant protections for borrowers.
Those facing extreme financial stress or unfair recovery tactics should consider approaching the DRT.
With proper documentation and timely legal advice, the DRT becomes a strong platform for ensuring justice, transparency, and relief during times of financial distress.
