Debt Recovery Lawyer (DRT Lawyer)

The legal process of debt money recovery in India begins with the creditor, such as a bank or financial institution, filing a case with the Debt Recovery Tribunal (DRT) or a civil court. The case is then heard by a judge, who will review the evidence presented by both the creditor and the debtor. If the judge finds that the debt is valid and the debtor is indeed liable to pay the amount, an order is passed in favour of the creditor.

Once the order is passed, the creditor can take various legal actions to recover the debt, such as attachment and sale of assets, arrest and detention of the debtor, etc. The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act also allows banks and financial institutions to take possession of and sell secured assets of defaulting borrowers in order to recover their dues.

In addition to the legal process, there are also various out of court settlements that can be made between the creditor and the debtor. These settlements are typically made through negotiation and mediation and involve the debtor paying off the debt in instalments over a period of time.

It is important to note that the legal process of debt money recovery in India can be time-consuming and can take several months or even years to be resolved. Additionally, the process can be costly for both the creditor and the debtor, which is why out of court settlements are often preferred. However, the legal process of debt money recovery in India is an important mechanism that ensures that creditors are able to recover their outstanding debts and that debtors are held accountable for their financial obligations.

In India, there are several legal remedies available under law for debt recovery cases. Some of the key remedies include:

1. Filing a suit for recovery: A creditor can file a suit for recovery in a court of law against the debtor to recover the outstanding debt. This can be done under the Civil Procedure Code, 1908.

2. Issuing a legal notice: A legal notice can be issued to the debtor, demanding payment of the outstanding debt. If the debtor fails to make payment within the notice period, the creditor can proceed to file a suit for recovery.

3. Attachment of assets: If the debtor has assets that can be attached, the court can order the attachment of those assets to secure the debt. This can be done under Order 38 of the Civil Procedure Code, 1908.

4. Garnishee proceedings: If the debtor has funds in a bank account or is due to receive a sum of money from a third party, the court can order the bank or the third party to pay the debt directly to the creditor. This can be done under Order 21 of the Civil Procedure Code, 1908.

5. Decree for recovery of possession: If the debt is related to a property, the court can pass a decree for recovery of possession of the property in favour of the creditor. This can be done under Order 39 of the Civil Procedure Code, 1908.

6. Arrest and detention of the debtor: In certain cases, if the debtor fails to pay the debt despite court orders, the court can order the arrest and detention of the debtor. This can be done under Order 21 of the Civil Procedure Code, 1908.

7. Insolvency and Bankruptcy Code, 2016: In case of corporate debtors, the remedy of corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 can be initiated by the financial creditors.

It’s important to note that the remedy selected will depend on the specific circumstances of the case and the nature of the debt. In addition, these are the major legal remedies available and there might be other remedies based on the type of debt, jurisdiction and other factors.

When filing a case related to debt recovery, the following documents are typically required:

1. Proof of the debt: This can include a copy of the loan agreement, promissory note, or any other document that establishes the existence of the debt.
2. Evidence of default: This can include copies of past due notices, letters demanding payment, or any other correspondence that demonstrates the borrower has failed to make payments as agreed.
3. Personal identification of the borrower: This can include a copy of the borrower’s driver’s license or passport.
4. Business registration documents: This can include a copy of the borrower’s business registration certificate, if the borrower is a business entity.
5. Collateral documents: If the loan is secured by collateral, copies of the relevant collateral documents such as mortgage deed, charge documents etc.
6. Any other documents that support the claim.

It’s important to note that the specific documents required may vary depending on the jurisdiction and the specific circumstances of the case. It is always better to consult a lawyer for the same.

In India, Debt Recovery cases are brought to the Supreme Court which is the highest court of the country. It is also known as the Apex Court.

The Supreme Court has played a vital role in shaping India’s legal system and has been instrumental in defining the rights of citizens.

Supreme Court
1. Meena Choudhary vs State of Haryana AIR 2014 SC 2033
2. State Bank of India vs M/s. Rajkot Nagarik Sahakari Bank Ltd. AIR 2015 SC 203
3. Union of India vs K.K.G. Textiles Ltd. AIR 2015 SC 1143
4. State Bank of India vs M/s. Hari Om Traders AIR 2015 SC 2208
5. State Bank of India vs Shri Prabhakar AIR 2015 SC 2451

High Courts
1. Haryana State Industrial & Infrastructure Development Corporation Ltd. vs P.H.D. 2. Chamber of Commerce & Industry & Ors. AIR 2009 Del 2118
3. The State of Punjab & Anr. vs Avtar Singh & Ors. AIR 2009 Punj & Har 123
4. Kiran Bala vs State Bank of India & Ors. AIR 2010 Del 902
5. R.R. Jain vs State of U.P. & Ors. AIR 2010 All 562
6. Syndicate Bank vs M/s. C.