This page explains defending a bank original application in the DRT in plain terms: the law, the forum, the documents and the usual steps. Legals365 is the legal platform of Advocate B.K. Singh and associates, based in Delhi NCR.
In short. When a bank files an Original Application under section 19 of the Recovery of Debts and Bankruptcy Act 1993, the DRT issues summons and the defendant must file a written statement within 30 days, extendable by up to 15 days only in exceptional cases. A good defence checks the account, interest and limitation, raises guarantor discharge where it exists, and counter-claims if the bank owes you money.
An Original Application, usually called an OA, is a bank's or financial institution's case for recovery of money before the Debts Recovery Tribunal. It is filed where the amount due is 20 lakh rupees or more, and it names the borrower and often everyone else who signed: co-borrowers, guarantors, directors who gave personal guarantees, partners, and sometimes the legal heirs of a borrower who has died. At the end the DRT can issue a recovery certificate, which the Recovery Officer enforces by attaching and selling property, freezing accounts and, in some cases, ordering arrest.
Many defendants lose an OA not on the merits but by doing nothing in the first month. The written statement has a short and strict deadline, the bank's figures are accepted if nobody challenges them, and an ex parte recovery certificate is much harder to undo than a defence is to file. This page explains how an OA runs, which defences actually reduce or defeat a bank's claim, how the position changes for co-borrowers and guarantors, and what to do in the first week after the summons arrives.
- Law
- Recovery of Debts and Bankruptcy Act 1993 (sections 17, 19, 22, 25 to 30); Debts Recovery Tribunal (Procedure) Rules 1993; Indian Contract Act 1872 (sections 128, 133, 135, 139, 141 on guarantees); Limitation Act 1963; Bankers' Books Evidence Act 1891.
- Forum
- Debts Recovery Tribunal with territorial jurisdiction where the defendant resides or works, where the cause of action arose, or where the bank branch keeping the account is located, for claims of 20 lakh rupees or more. Appeal to the Debts Recovery Appellate Tribunal.
- Time limit
- Written statement within 30 days of service of summons; the Presiding Officer may extend by not more than 15 days in exceptional cases for recorded reasons. Bank's money claim generally 3 years from default, extended by written acknowledgments and part payments; 12 years to enforce a mortgage.
- Documents
- Summons and OA copy with annexures, sanction letters, loan and guarantee documents, full statement of account, interest rate letters, repayment proof, correspondence with the bank, settlement proposals, and any notices under SARFAESI.
What an Original Application is and when a bank files it
An Original Application is a recovery case filed by a bank, a financial institution or a notified NBFC under section 19 of the Recovery of Debts and Bankruptcy Act 1993. It replaces a civil suit for money for claims of 20 lakh rupees and above; the DRT's jurisdiction in such claims excludes the civil court. Below that figure the bank goes to the civil court or uses other remedies.
Banks usually file an OA after the account has been classified as a non-performing asset and a recall notice has gone out. It often runs alongside SARFAESI action against the mortgaged property, a cheque bounce complaint on returned cheques, or insolvency proceedings against a company. The OA is the bank's route to a money decree against everyone liable, including guarantors whose personal assets are not mortgaged at all.
The OA itself sets out the facilities, the security, the defaults, the amount claimed with interest, and the relief sought: a recovery certificate, sale of the hypothecated and mortgaged assets, and interim orders. Read it closely. Its annexures, particularly the statement of account and the documents of guarantee, are where most defences are found.
The first 30 days: summons, restraint and the written statement
When the DRT admits the OA it issues summons asking each defendant to show cause within 30 days why the relief should not be granted. Under section 19(4) the summons also directs the defendant to disclose particulars of properties and assets other than those the bank has listed, and restrains the defendant from transferring or dealing with the secured assets without the tribunal's permission. Disposing of a secured asset in breach of that restraint can attract penal consequences, so do not sell or mortgage anything named in the OA once the summons is served.
The written statement must be filed within 30 days of service. The Presiding Officer can extend this by not more than 15 days, and only in exceptional cases for reasons recorded in writing. Unlike some civil suits, there is no comfortable practice of extensions here. If the written statement is not filed, the DRT can proceed on the bank's pleadings and affidavit alone.
Use the 30 days well. Apply for inspection of documents if the bank has not filed copies you need, ask the bank in writing for the full statement of account from the first disbursement, and collect your own repayment records. A defence filed on day 29 after this work is worth far more than one filed on day 5 that only denies everything.
The provisions that matter in an OA defence
Section 19, RDB Act 1993
Covers filing of the application, summons, the 30-day written statement, set-off and counter-claim (sub-sections 6 to 11), interim orders including attachment and injunction (sub-sections 12 to 14), the final order with interest (sub-section 20) and issue of the recovery certificate (sub-section 22). The DRT is to try to decide the OA within 180 days of filing.
Section 22, RDB Act 1993
The DRT is not bound by the Code of Civil Procedure but by the principles of natural justice, and has the powers of a civil court for summoning, discovery, evidence on affidavit, commissions and reviewing or setting aside its own orders, including ex parte orders.
Sections 25 to 30, RDB Act 1993
The Recovery Officer executes the recovery certificate by attachment and sale of movable and immovable property, arrest and detention, or appointment of a receiver. An order of the Recovery Officer can be appealed to the DRT within 30 days under section 30.
Sections 128, 133, 135, 139 and 141, Indian Contract Act 1872
A guarantor's liability is co-extensive with the borrower's unless the contract says otherwise (s.128). A variance in the terms of the loan made without the guarantor's consent discharges him for later transactions (s.133). A release of, or compromise with, the borrower may discharge the guarantor (s.135). An act of the bank that impairs the guarantor's eventual remedy against the borrower discharges him (s.139), and loss of security through the bank's fault reduces his liability to that extent (s.141).
Sections 18 and 19, Limitation Act 1963
A written acknowledgment of liability, signed before the limitation period expires, starts a fresh period. So does a part payment made by the person liable. Banks rely heavily on balance confirmation letters and revival letters for this reason.
Common defences and what proves them
| Defence | What it means | What you need to prove it |
|---|---|---|
| Wrong amount | Interest above the contract rate, wrong compounding, penal charges capitalised, credits missing | Sanction letters, rate change letters, your own repayment proof, a recalculation of the account |
| Time-barred claim | No valid acknowledgment or payment within 3 years before filing | Statement of account, all letters signed by you, dates of signature |
| Guarantor discharged | Loan terms changed or security released without the guarantor's consent | Guarantee deed, later sanction letters, release or substitution documents |
| Guarantee does not cover this facility | Guarantee limited to a particular loan, amount or period | Text of the guarantee deed and the facilities named in it |
| Not a party to the debt | Signature disputed, or the person signed only as a witness or in another capacity | Specimen signatures, handwriting comparison, surrounding documents |
| Set-off or counter-claim | Bank owes money: wrongful debits, failure to release funds, loss from deficient service | Correspondence, account entries, expert or accountant's working |
| Security not realised properly | Bank let hypothecated stock or mortgaged property lose value through its own fault | Inspection reports, stock statements, valuation reports, auction records |
| Restructuring or settlement ignored | Bank agreed to restructure or settle and then sued on the old terms | Sanction of restructuring, OTS letters, payments made under them |
Checking the bank's claim: account, interest and charges
Most OAs claim more than the bank can justify, and the excess is usually in interest. Start with the sanction letter and every later letter that changed the rate. Then compare them with the interest actually debited in the statement of account, quarter by quarter. Common errors are interest charged above the agreed rate, monthly compounding where the contract provides quarterly or simple interest, interest charged on interest after the account became a non-performing asset, and processing, inspection and legal charges debited without any basis in the contract.
RBI's directions on penal charges, applicable to loans from 2024, require penal charges to be levied as charges and not added to the rate of interest or compounded. Where the bank has kept loading penal interest onto the outstanding balance, that portion can be challenged. Insist on the full statement from the first disbursement. A statement that starts only a year before the NPA date hides the history, including payments you made.
Interest after filing is a separate question. Under section 19(20) the DRT decides what rate of interest to allow from the date of the application until payment, and it is not bound to allow the contract rate. Defendants who show that the account was mishandled, or that the bank delayed realising the security, can ask for a lower rate or simple interest. In many cases that reach Advocate B.K. Singh's office, the biggest saving for the client comes not from defeating the claim but from cutting the interest the DRT allows after the filing date.
If the figures are complex, an accountant's recalculation filed with the written statement makes the challenge concrete. The DRT is more willing to examine a specific statement that the claim should be 1.12 crore rather than 1.48 crore, with workings, than a general plea that the claim is inflated.
Limitation as a defence
A bank's claim for money under a loan is generally barred three years after the cause of action, usually the date of default or recall, unless that period was extended. The Limitation Act applies to OAs. Extensions come from written acknowledgments of liability signed before the period expired (section 18) and part payments by the person liable (section 19). Banks routinely take balance confirmation letters, renewal applications and revival letters precisely to keep the claim alive.
So the limitation defence turns on documents. List every letter the bank relies on, check who signed it and when, and whether each one was signed within three years of the last. An acknowledgment signed by the borrower company does not necessarily extend the period against a guarantor, and an entry in the company's balance sheet showing the loan has been treated as an acknowledgment in some cases. Where the bank also holds a mortgage, its right to enforce payment from the mortgaged property has a 12-year period under Article 62, even if the personal money claim has lapsed.
Limitation must be pleaded in the written statement with facts, not raised for the first time at final arguments. A tribunal is bound to consider limitation even if not pleaded, but it decides it on the record, and the record is what you put in.
Co-borrowers and guarantors
A co-borrower is a principal debtor. A co-borrower who signed the loan agreement, such as a spouse on a home loan, is liable for the whole debt alongside the main borrower, and the bank can proceed against either. A co-borrower's defences are mostly the borrower's defences: amount, interest, limitation, and whether he or she actually signed the documents relied on. A co-borrower who never received any money is still liable if the documents make him a borrower, which is why reading what was signed matters so much.
A guarantor's liability is co-extensive with the borrower's, and the bank need not sue the borrower first or exhaust the mortgaged security. But guarantors have defences of their own under the Contract Act. If the bank enhanced the limit, changed the facility or restructured the loan without the guarantor's consent, the guarantor may be discharged for transactions after the change. If the bank released a security or allowed it to be lost through its own neglect, the guarantor's liability may be reduced by the value lost. If the guarantee was limited to a particular facility, amount or period, the claim beyond it fails. Many guarantee deeds contain clauses where the guarantor consents in advance to such changes; whether a clause covers what the bank actually did is a question of reading it closely.
Directors who signed personal guarantees for company loans are often surprised to find themselves in an OA after resigning from the company. Resignation does not end a guarantee. A continuing guarantee can usually be revoked for future transactions by notice under section 130 of the Contract Act, but liability for advances already made remains. Former directors should look for any revocation letter they sent, and for any later facility that the bank treated as covered without fresh consent.
Counter-claim and set-off
The RDB Act lets a defendant claim set-off and file a counter-claim against the bank in the same OA, and the DRT decides both together. A counter-claim is a cross-claim for money the bank owes you, such as loss caused by a sanctioned limit not released, wrongful debits, a fixed deposit adjusted without authority, or damage from the bank's wrongful action against the business. It is treated like a plaint, so it must be specific, supported by documents, and valued. A court fee is payable on it; ask for the current schedule.
Set-off is narrower: a sum the bank owes you that you want adjusted against its claim. Both must be raised in the written statement or within the time the DRT allows. A counter-claim raised later, after evidence is closed, is rarely entertained. Bear in mind that a weak counter-claim can make the whole defence look like a delaying tactic, so file one only where there is a real claim.
Interim orders in the OA
Banks often ask the DRT, at the very start, for interim orders under section 19(12) to (14): attachment of property before final order, an injunction against transfer, appointment of a receiver, or directions to disclose assets. Some are granted ex parte on the first date. If an interim order has been passed against you, you can apply to vacate or modify it, and you should do so promptly with the facts the bank left out, such as the value of the mortgaged security already available.
A defendant who needs to sell a property, for example to raise money for settlement, can apply to the DRT for permission and propose that sale proceeds be deposited or paid to the bank. This is far better than a sale in breach of the restraint, which can lead to proceedings for contempt and to the sale being treated as void against the bank.
How an OA runs from summons to recovery certificate
The DRT is meant to decide an OA within 180 days. In practice many take longer, but the early steps come quickly and missing them has lasting effects.
Service of summons
Summons go to every defendant with a copy of the OA, by post, email or other modes the rules permit, and sometimes by publication. Note the date you received it; time runs from there.
Appearance and inspection
Enter appearance through a vakalatnama on the first date. If the bank has not supplied all documents, apply to inspect them or for copies. Ask the bank in writing for the full statement of account.
Written statement and counter-claim
File the written statement within 30 days, with every defence, all supporting documents and any counter-claim or set-off. Disclose the assets the summons asks about; incomplete disclosure is held against you.
Replication and affidavits
The bank may file a replication and a reply to the counter-claim. Evidence in the DRT is largely by affidavit: the bank's officer files one proving the account, and you file yours with your documents.
Cross-examination where needed
Either side can apply to cross-examine the other's deponent. The DRT allows this where a real factual dispute needs testing, such as a disputed signature or an alleged oral settlement.
Final arguments and order
After hearing arguments the DRT passes a final order under section 19(20), deciding the amount, the rate of interest from filing, and the liability of each defendant, and issues a recovery certificate under section 19(22).
Appeal or execution
The losing party can appeal to the DRAT within 45 days, with a pre-deposit if it is the defendant. If there is no appeal or no stay, the Recovery Officer begins execution.
Attend every date, or ensure your advocate does. DRTs can close the right to file evidence or proceed ex parte when a defendant is absent, and restoring the position takes time and an application with good reasons.
Evidence in the DRT
The bank proves its claim mainly through an affidavit of a bank officer and a certified statement of account under the Bankers' Books Evidence Act 1891. A printout from a computerised system needs the certificate that Act requires, and where electronic records are relied on, the Bharatiya Sakshya Adhiniyam 2023 (section 63) governs their admissibility. Check that the certificates are there and properly given; a statement of account without a valid certificate is a weak foundation for a large claim.
Your evidence is also on affidavit, with documents annexed. Repayment proof from your own bank, letters from the lending bank, settlement proposals and replies, and the guarantor's papers carry far more weight than oral assertions. Where you dispute a signature, ask for the original document to be produced and, if necessary, for the opinion of a handwriting examiner.
Documents to collect for an OA defence
From the bank and the OA
- Summons and complete copy of the OA with annexures
- Sanction letters, renewal letters and rate change letters
- Loan agreement, hypothecation and mortgage documents
- Guarantee deeds, each with its date and limits
- Full statement of account from first disbursement, with Bankers' Books Evidence Act certificate
- Recall notice, NPA communication and SARFAESI notices if any
Your own records
- Your bank statements showing every repayment
- Letters and emails exchanged with the bank
- Balance confirmations and acknowledgments you signed, with dates
- Restructuring or one-time settlement proposals and the bank's replies
- Stock statements and inspection reports for cash credit accounts
- Valuation reports of the mortgaged property
For guarantors and co-borrowers
- Any revocation letter for a continuing guarantee
- Proof of resignation as director or partner, if relevant
- Later sanction letters that you did not sign
- Documents showing release or substitution of any security
For the filing
- Vakalatnama
- Written statement with verification and affidavit
- Counter-claim with valuation and court fee, if any
- List of documents and copies for the bank
- Disclosure of assets as required by the summons
Parallel proceedings: SARFAESI, cheque bounce, IBC and criminal complaints
An OA rarely stands alone. The bank can pursue SARFAESI action against the mortgaged property at the same time; that is challenged separately by a Section 17 SARFAESI application, not in the OA. Returned EMI cheques can lead to a complaint under section 138 of the Negotiable Instruments Act; see cheque bounce cases. None of these is barred merely because an OA is pending.
Insolvency changes things. Once a company is admitted into the corporate insolvency resolution process, the moratorium under section 14 of the Insolvency and Bankruptcy Code stops the OA against the company, but not against its guarantors. If an insolvency application is filed against a personal guarantor, an interim moratorium applies to debts of that guarantor. See insolvency under the IBC. Banks may also start proceedings to declare a borrower a wilful defaulter under RBI's directions, which has serious consequences for future credit and for directors.
Recovery agents and harassment are a separate issue. A pending OA does not give the bank or its agents any right to threaten or humiliate you. Our page on recovery agent harassment covers what can be done.
Ex parte orders and how to set them aside
If the DRT passed a final order without hearing you, for example because summons went to an old address or the advocate stopped appearing, you can apply to the same DRT to set the ex parte order aside under its powers in section 22. Apply as soon as you learn of the order. Explain why you did not appear, with proof, and attach your proposed defence to show that a hearing would make a difference.
The DRT may set the order aside on terms, sometimes requiring part deposit. An appeal to the DRAT is the alternative, but it needs the pre-deposit. Where service was genuinely defective, an application to the DRT is usually the better first step. Execution by the Recovery Officer can continue unless the DRT stays it, so ask for a stay in the same application.
Recovery certificate and the Recovery Officer
Once the DRT issues a recovery certificate, the Recovery Officer of that DRT enforces it under sections 25 to 28 of the RDB Act. The Recovery Officer can attach and sell immovable and movable property, attach bank accounts and salaries, appoint a receiver, and in limited cases order arrest and civil detention after notice. Defendants receive a demand notice and a short time to pay.
Orders of the Recovery Officer can be challenged by appeal to the DRT under section 30 within 30 days. The common grounds are attachment of property that does not belong to the certificate debtor, sale at an undervalue, sale without proper proclamation, and arrest without inquiry into the ability to pay. Third parties whose property has been attached can also object before the Recovery Officer. A sale under the RDB Act can still be settled before confirmation if the bank agrees, so execution is not the end of the road for negotiation.
Settling an OA
Many OAs end in a settlement rather than a contested decree. Banks have board-approved one-time settlement policies, and a defendant with a credible defence on interest or guarantee is in a better position to negotiate than one without. A settlement can be recorded before the DRT as consent terms, and a consent order cannot later be appealed, so read the terms carefully, especially the consequences of a missed instalment. Our page on loan settlement and one-time settlement explains how banks evaluate offers.
DRTs regularly hold Lok Adalats where pending OAs and pre-litigation recovery matters are settled; a Lok Adalat award is final. See mediation, conciliation and Lok Adalat. Keep the defence going while you negotiate. A defence abandoned in the hope of settlement leaves you with nothing if the talks fail.
How the defence changes by borrower type
MSME and business borrowers. Cash credit and term loan accounts produce the most disputes over stock statements, drawing power and interest. If the bank ignored a request under the RBI framework for revival and rehabilitation of MSMEs, that can be raised, but it carries weight only if it was invoked in time. A counter-claim for losses caused by the bank's freeze of the account may be relevant.
Home loan and individual borrowers. The usual issues are rate resets on floating loans, insurance premiums debited to the loan, and the bank's sale of the house under SARFAESI for less than its value, which should be credited properly. Spouses as co-borrowers face full liability.
Companies with director guarantors. The company and each guarantor should file separate written statements, because their defences differ. A director's guarantee defence may succeed even where the company has none.
NRI defendants. Service abroad, delays in receiving papers and execution against Indian property are the practical concerns. A power of attorney to a family member in India helps with attendance and documents, but the written statement should be verified by the defendant.
Legal heirs. Heirs of a deceased borrower or guarantor are liable only to the extent of the estate they inherited, not personally. An heir who received nothing from the estate should say so in the written statement and ask to be discharged.
NBFC claims. Notified NBFCs can also use the DRT. Check that the NBFC actually falls within the notification for the claim amount, and that its interest and charges follow RBI's fair practices code; our page on banking disputes and NBFC matters has more.
Mistakes defendants make in DRT cases
- Ignoring the summons. Hoping the bank will settle is not a defence. The 30-day period runs regardless, and an ex parte order follows.
- Filing a bare denial. A written statement that denies every paragraph without figures or documents gives the DRT nothing to act on.
- Not asking for the full statement of account. The interest errors are usually in the early years, which the bank's annexure may not show.
- One defence for everyone. The borrower, co-borrower and each guarantor often have different defences. A joint written statement can bury the strongest one.
- Selling a secured asset during the case. The section 19(4) restraint applies from summons. A sale in breach invites contempt and can be undone.
- Signing confirmations casually. Every balance confirmation letter signed during negotiations may extend limitation. Read before signing.
- Abandoning the defence during settlement talks. Keep filing on time until a settlement is actually recorded.
A made-up example: the director who resigned
Here's a made-up example. A bank files an OA for about 2.3 crore rupees against a garment exporting company, its two current directors and a former director. The former director had signed a personal guarantee in 2016 when the company's cash credit limit was 60 lakh rupees. He resigned in 2019 and wrote to the bank revoking the guarantee for future advances. In 2021 the bank raised the limit to 1.5 crore on a fresh sanction signed only by the current directors.
His written statement relies on the revocation letter under section 130 of the Contract Act, the 2021 sanction he never signed, and section 133 on variance without consent. He attaches the bank's acknowledgment of his letter and his resignation filing with the Registrar of Companies. He also points out that the bank's interest calculation compounds monthly though the sanction says quarterly.
In a case built like this the DRT could well limit his liability to what was outstanding under the original limit at the time of revocation, or discharge him if the variance is found material, while the company and current directors face the larger amount. The result in any real case depends on the exact wording of the guarantee deed, which is why that document is read first.
What to do this week if you have received DRT summons
- Write down the date you received the summons and count 30 days.
- Read the OA and list every facility, guarantee and document it relies on.
- Write to the bank asking for the full statement of account from first disbursement and copies of all documents you signed.
- Collect your own repayment records and every letter you signed for the bank.
- Do not sell, transfer or mortgage any asset named in the OA.
- Check whether SARFAESI notices, cheque bounce complaints or insolvency papers are also pending.
- Decide whether you will propose a settlement, and keep that separate from the defence.
- Engage an advocate early enough for the written statement to be drafted from documents, not memory.
When to fight, when to settle, and the next step
Not every OA should be fought to a final order. Where the debt is real and the figures are broadly right, the defence is a tool for bringing the claim down to what is lawful and for getting time; the end point is often a settlement. Where there is a real legal answer, such as a discharged guarantee, a time-barred claim or a facility you never signed for, it is worth taking to a final decision. When Advocate B.K. Singh is asked to defend an OA, he reads the guarantee deed and the first two years of the statement of account before anything else, because that is where the case is usually decided.
If the DRT has already ruled against you, the next step is an appeal to the DRAT within 45 days with a pre-deposit; see DRAT appeals and pre-deposit. If an auction of your property is close, see stopping or challenging a bank auction. If you want the summons and your papers checked before the 30 days run out, the team of Advocate B.K. Singh at Legals365 can review them and tell you the next step: talk to a lawyer.
Frequently asked questions
What is an Original Application in DRT?
It is a recovery case filed by a bank, financial institution or notified NBFC under section 19 of the Recovery of Debts and Bankruptcy Act 1993, for claims of 20 lakh rupees or more. It ends in a final order and, if the bank succeeds, a recovery certificate enforced by the Recovery Officer.
What is the time limit to file a written statement in DRT?
30 days from service of summons. The Presiding Officer can extend it by not more than 15 days, only in exceptional cases and for reasons recorded in writing. After that the DRT can proceed on the bank's case alone.
Can a guarantor be sued in DRT without the bank first suing the borrower?
Yes. A guarantor's liability is co-extensive with the borrower's, and the bank can proceed against the guarantor without exhausting its remedies against the borrower. The guarantor can still rely on defences such as discharge by variance or the limits of the guarantee.
How do I challenge an inflated claim in a DRT case?
Ask for the full statement of account from first disbursement and compare the interest debited with the sanction letters. Point out excess rates, wrong compounding, penal charges added to interest and missing credits in the written statement, preferably with an accountant's recalculation.
Is a co-borrower liable for the whole loan in DRT?
Usually yes. A co-borrower who signed the loan agreement is a principal debtor and can be held liable for the full amount, even without having used the money. The defences available are mostly those of the borrower, plus any dispute about what the co-borrower actually signed.
Can the bank's claim in DRT be time-barred?
Yes. The money claim is generally barred three years after default unless extended by a written acknowledgment or part payment within that period. The bank's right to enforce a mortgage has a longer, 12-year period.
Can I file a counter-claim against the bank in DRT?
Yes. The RDB Act allows set-off and counter-claim in the OA, decided along with the bank's claim. It must be specific, supported by documents and valued, with the prescribed court fee.
What happens if I do not appear in DRT?
The DRT can proceed ex parte and pass a recovery certificate on the bank's affidavit. You can apply to set aside the ex parte order with good reasons for absence, but execution may continue unless stayed.
Can the bank go ahead with SARFAESI while the DRT case is pending?
Yes. SARFAESI action and the OA can run at the same time. A SARFAESI measure is challenged by a separate application under section 17, not inside the OA.
Are legal heirs liable for a deceased borrower's DRT case?
Only to the extent of the estate they inherited. An heir is not personally liable beyond that, and an heir who received nothing should say so in the written statement.
What can the Recovery Officer do after a recovery certificate?
Attach and sell property, attach bank accounts and salary, appoint a receiver and, in limited cases after notice and inquiry, order civil detention. Orders of the Recovery Officer can be appealed to the DRT within 30 days.
Can a DRT case be settled?
Yes. Many are settled through the bank's one-time settlement scheme or at DRT Lok Adalats, and the settlement is recorded as a consent order. Continue the defence until the settlement is actually recorded.
Need help with Negotiated Settlement / OTS Assistance with Banks & NBFCs (DRT-linked disputes)? Send your papers or a short note of what has happened. An advocate from the team of Advocate B.K. Singh will read it and tell you the next step.
