Pre-Filing Assessment
Before initiating a DRT case, conduct a thorough assessment to ensure your case meets the jurisdictional requirements and has strong legal foundations for successful recovery.
Initial Case Evaluation
Debt Amount Verification
Confirm outstanding debt is ≥ ₹20 lakhs (DRT threshold)
Applicant Eligibility
Verify bank/FI status and lending authority
Territorial Jurisdiction
Identify correct DRT based on borrower/branch location
Limitation Period
Ensure case is within 3-year limitation period
Key Questions to Address
- • Is the debt legally enforceable?
- • Are all loan documents properly executed?
- • Has proper demand notice been served?
- • Is the account classified as NPA?
- • Are there any pending legal proceedings?
Risk Assessment Factors
- • Borrower's financial condition
- • Asset availability and value
- • Guarantor financial status
- • Recovery cost vs. debt amount
- • Alternative recovery options
Eligibility Criteria for DRT Filing
Understanding eligibility criteria is crucial for successful DRT case initiation. Both applicant and case-specific requirements must be satisfied.
Applicant Eligibility
Eligible Applicants
- • Scheduled Commercial Banks
- • Regional Rural Banks
- • Cooperative Banks
- • Financial Institutions (NABARD, SIDBI, etc.)
- • Non-Banking Financial Companies (NBFCs)
- • Asset Reconstruction Companies (ARCs)
Required Authorization
- • Valid banking license/registration
- • RBI authorization for lending
- • Board resolution for recovery action
- • Proper delegation of authority
- • Legal standing to sue
Case-Specific Requirements
Pecuniary Jurisdiction
Debt amount must be ₹20 lakhs or above (including principal, interest, and charges)
Territorial Jurisdiction
DRT where borrower resides/carries business or bank branch is located
Limitation Period
Application within 3 years from cause of action (last payment/acknowledgment)
Debt Classification Requirements
NPA Status
Account classified as Non-Performing Asset
Default Period
Continuous default for specified period
Demand Notice
Proper demand served on borrower
Document Preparation & Checklist
Comprehensive documentation is critical for DRT case success. Prepare all required documents meticulously to avoid delays and objections.
Essential Documents Checklist
Primary Loan Documents
Account & Recovery Documents
Corporate Documents
- • Board resolution authorizing recovery
- • Power of attorney to authorized officer
- • Certificate of incorporation
- • Banking license/RBI authorization
- • Audited financial statements
Security & Valuation
- • Property title documents
- • Valuation reports
- • Insurance policies
- • Registration/charge creation documents
- • Asset verification reports
Application Drafting & Format
The Original Application (OA) is the foundation of your DRT case. Proper drafting ensures clear presentation of facts, legal grounds, and relief sought.
Original Application Structure
Title & Parties
DRT name, application number, applicant and respondent details
Jurisdiction & Cause of Action
Territorial and pecuniary jurisdiction, limitation compliance
Facts & Chronology
Detailed factual matrix with dates and events
Legal Grounds & Prayer
Legal basis for recovery and specific relief sought
Key Drafting Points
- • Clear and concise factual narration
- • Chronological sequence of events
- • Specific mention of debt amount
- • Reference to relevant legal provisions
- • Proper annexure references
- • Professional language and format
Common Drafting Errors
- • Vague or ambiguous statements
- • Incorrect debt calculations
- • Missing jurisdictional facts
- • Inadequate legal grounds
- • Poor annexure organization
- • Typographical errors
Essential Elements to Include
- • Applicant's status as bank/financial institution
- • Borrower's details and business information
- • Loan facility details and purpose
- • Security details and valuation
- • Default details and demand notices
- • Outstanding amount calculation
- • Interest and charges breakdown
- • Guarantor details and liability
- • Previous recovery efforts
- • Specific relief and interim prayers
Filing Procedure & Process
Follow the systematic filing procedure to ensure your DRT application is properly submitted and accepted for adjudication.
Step-by-Step Filing Process
Document Preparation & Review
Complete application drafting and document compilation
Timeline: 7-15 days
Fee Calculation & Payment
Calculate court fees and make payment via demand draft
Timeline: 1-2 days
Physical Filing at DRT
Submit application with documents and fees at DRT registry
Timeline: Same day
Scrutiny & Admission
DRT examines application for compliance and admits if in order
Timeline: 7-15 days
Case Number Assignment
DRT assigns case number and schedules first hearing
Timeline: 2-3 days after admission
Filing Requirements
- • Original application in prescribed format
- • 5 copies of application and annexures
- • Court fee demand draft
- • Vakalatnama (if filed through advocate)
- • Index of documents
- • Affidavit of authorized officer
Registry Timings
Fees Structure & Payment Process
Understanding the fee structure and payment process is essential for proper DRT case filing. Fees are calculated based on the debt amount claimed.
DRT Fee Structure (2025)
| Debt Amount Range | Court Fee | Additional Charges |
|---|---|---|
| ₹20 lakhs to ₹1 crore | ₹5,000 | Process fee: ₹500 |
| ₹1 crore to ₹5 crores | ₹10,000 | Process fee: ₹500 |
| ₹5 crores to ₹10 crores | ₹15,000 | Process fee: ₹500 |
| Above ₹10 crores | ₹25,000 | Process fee: ₹500 |
Payment Methods
- • Demand Draft in favor of "Registrar, DRT [City Name]"
- • Payable at the city where DRT is located
- • Cash payments not accepted
- • Online payment (where available)
- • Bank guarantee for large amounts
Additional Costs
- • Advocate fees (₹50,000 - ₹5,00,000)
- • Document preparation costs
- • Valuation report fees
- • Service of notice charges
- • Miscellaneous expenses
Post-Filing Steps & Timeline
After filing, several procedural steps follow in sequence. Understanding the timeline helps in proper case management and preparation.
Post-Filing Timeline
Application Scrutiny
DRT examines application for completeness and compliance
Notice to Respondents
DRT issues notice to borrower and guarantors
Service of Notice
Notice served on respondents through various modes
Written Statement Filing
Respondents file reply within 30 days of service
Hearing & Arguments
Regular hearings and final arguments
Immediate Actions Required
- • Monitor case status regularly
- • Ensure proper service of notice
- • Prepare for interim applications
- • Coordinate with process server
- • Maintain case diary
Potential Challenges
- • Service difficulties
- • Jurisdictional challenges
- • Interim stay applications
- • Document objections
- • Procedural delays
Common Mistakes to Avoid
Learning from common mistakes can prevent delays, rejections, and additional costs in DRT proceedings.
Documentation Errors
- Incomplete or illegible document copies
- Missing mandatory annexures
- Incorrect debt amount calculations
- Improper document authentication
Procedural Errors
- Wrong DRT jurisdiction selection
- Inadequate cause of action
- Limitation period oversight
- Incorrect fee calculation
Expert Tips for Success
Professional insights and best practices for effective DRT case initiation and management.
Strategic Recommendations
Thorough Preparation
Complete documentation before filing
Expert Counsel
Engage experienced DRT advocates
Proactive Management
Monitor case progress actively
Conclusion
Initiating a DRT case requires careful planning, thorough documentation, and adherence to procedural requirements. Success depends on proper preparation, expert guidance, and strategic case management from the outset.
Following this step-by-step guide will help ensure your DRT application is filed correctly, setting the foundation for effective debt recovery proceedings under the DRT Act.
Need Expert Assistance with DRT Case Filing?
Navigate the complex DRT filing process with confidence. Our experienced team provides comprehensive support for debt recovery case initiation with proven success rates.
Related Articles
DRT Explained: Rights of Banks & Borrowers in Haryana
Complete guide to DRT rights, procedures, and enforcement mechanisms.
Debt Recovery by Banks: SARFAESI Act & DRT Procedures
Complete guide to bank debt recovery mechanisms and legal procedures.
SARFAESI Act: Borrower Rights & Legal Remedies
Know your rights under SARFAESI Act and available legal remedies.