x
AVP Legis Chambers
INTEGRITY
│ Advocates • Solicitors • Mediators • Chartered Accountants • Insolvency Professionals Advocates & Solicitors

Appendices & Quick Reference Tables

SUPPLEMENT

Appendices & Quick Reference Tables

This Appendix serves as a ready reckoner for advocates, banks, financial institutions, insolvency professionals and students dealing with proceedings before the Debt Recovery Tribunal. It consolidates important statutory provisions, procedural rules, practical checklists and quick-reference tables into a single practice-oriented resource.

Contents

  • Important Statutory Provisions
  • Important Procedural Rules
  • Jurisdiction & Court Fees
  • Practice Checklists
  • Frequently Used Forms
  • Quick Reference Tables

Appendix 1 – Important Sections of the Recovery of Debts and Bankruptcy Act, 1993

Section Subject Matter
Section 2 Definitions used throughout the Act.
Section 3 Establishment of Debt Recovery Tribunals.
Section 8 Composition and powers of the Tribunal.
Section 17 Jurisdiction, powers and authority of the Tribunal.
Section 18 Bar of jurisdiction of civil courts.
Section 19 Applications to the Tribunal for recovery of debt.
Section 20 Appeals to the Debt Recovery Appellate Tribunal.
Section 22 Procedure and powers of the Tribunal.
Section 25 Modes of recovery by the Recovery Officer.
Section 26 Recovery through attachment and sale.
Section 28 Other modes of recovery.
Section 30 Appeal against the order of the Recovery Officer.
Section 31B Priority of secured creditors.
Practice Note: Sections 17, 18, 19, 22, 25, 30 and 31B are among the most frequently cited provisions in DRT litigation and should be readily accessible during hearings.

Appendix 2 – Important Sections of the SARFAESI Act, 2002

Section Subject Matter
Section 2 Definitions.
Section 5 Acquisition of financial assets by Asset Reconstruction Companies.
Section 13(2) Demand notice issued to the borrower.
Section 13(3A) Borrower's representation and creditor's reply.
Section 13(4) Measures available to the secured creditor.
Section 14 Assistance of the Chief Metropolitan Magistrate / District Magistrate.
Section 17 Application before the Debt Recovery Tribunal.
Section 18 Appeal before the Debt Recovery Appellate Tribunal.
Section 26B Registration of security interest with CERSAI.
Section 26E Priority of secured creditors.
Practice Note: In SARFAESI litigation, Sections 13, 14, 17, 18 and 26E are the provisions most frequently relied upon before the Tribunal.

Appendix 3 – Important Rules under the Security Interest (Enforcement) Rules, 2002

Rule Subject Matter
Rule 3 Service of demand notice.
Rule 4 Representation by the borrower.
Rule 6 Possession of movable secured assets.
Rule 8 Possession of immovable secured assets.
Rule 9 Sale of immovable secured assets.
Rule 10 Sale of movable secured assets.

Rules Most Frequently Examined by the DRT

  • Compliance with possession procedures.
  • Publication of possession notices.
  • Valuation and reserve price.
  • Service of sale notice.
  • Auction procedure.
  • Confirmation of sale.

Appendix 4 – Important Provisions Relating to DRT Procedure

Topic Reference
Institution of Proceedings Recovery of Debts and Bankruptcy Act, 1993 and the applicable DRT (Procedure) Rules.
Issue of Summons Procedure Rules governing service.
Filing of Written Statement Directions issued by the Tribunal and applicable procedural provisions.
Evidence Affidavit evidence and documentary proof.
Interim Applications Procedural powers of the Tribunal.
Final Orders Adjudication followed by issuance of Recovery Certificate, where applicable.
Office Tip: Keep bookmarked copies of the Recovery of Debts and Bankruptcy Act, the SARFAESI Act, the Security Interest (Enforcement) Rules, 2002 and the applicable DRT (Procedure) Rules. Most procedural questions arising during hearings can be resolved by referring directly to the statutory text.

Appendix 5 – Jurisdiction of the Debt Recovery Tribunal

Before instituting proceedings, every advocate should verify both the pecuniary and territorial jurisdiction of the Tribunal. Filing before an incorrect Tribunal may result in delay, additional costs and avoidable procedural objections.

Type of Jurisdiction Practical Considerations
Pecuniary Jurisdiction Verify that the amount of debt satisfies the statutory monetary threshold prescribed under the Recovery of Debts and Bankruptcy Act, 1993, as amended.
Territorial Jurisdiction Determine the appropriate Tribunal based upon the location of the branch where the debt arose, the place where the defendant carries on business or resides, or where the cause of action wholly or partly arose, subject to the provisions of the Act.
Multiple Defendants Consider whether proceedings may be instituted before a Tribunal having jurisdiction over one or more defendants in accordance with the applicable statutory provisions.
Corporate Borrowers Verify the registered office, principal place of business and the branch from which the financial assistance was sanctioned.
Practice Note: Jurisdiction should always be examined before drafting the Original Application. A short jurisdiction note prepared for the office file often prevents unnecessary objections during filing.

Appendix 6 – Territorial Jurisdiction Checklist

Verify the Following Before Filing

  • Location of the lending branch.
  • Place where the loan documents were executed.
  • Registered office of the borrower.
  • Principal place of business.
  • Residence of individual defendants.
  • Location of secured assets.
  • Place where the cause of action substantially arose.
  • Any contractual jurisdiction clause.
Question Action
Is the Tribunal territorially competent? Verify before preparing pleadings.
Does the cause of action arise within jurisdiction? Record supporting facts in the Original Application.
Are multiple branches involved? Determine the branch relevant to the debt transaction.
Are secured assets located elsewhere? Consider whether additional proceedings may be required.

Appendix 7 – DRT Court Fee Ready Reckoner

Court fees payable before the Debt Recovery Tribunal are governed by the applicable statutory provisions and notifications. As fee structures may be amended from time to time, advocates should always verify the latest schedule before presentation of the Original Application.

Proceeding Practice Guidance
Original Application Calculate the prescribed fee with reference to the amount of debt claimed.
Counter-Claim Verify whether a separate fee is payable.
Appeal against Recovery Officer Refer to the applicable statutory fee schedule.
Miscellaneous Applications Check the relevant procedural rules and notifications.

Office Practice

  • Verify the latest fee schedule immediately before filing.
  • Retain proof of fee payment in the office file.
  • Cross-check calculations independently.
  • Keep a printed copy of the current fee notification at the filing desk.

Appendix 8 – DRAT Appeal Fee Ready Reckoner

Appeals before the Debt Recovery Appellate Tribunal involve statutory filing requirements, including payment of the prescribed fee and compliance with any applicable pre-deposit provisions. Both should be verified before filing.

Requirement Practice Guidance
Appeal Fee Verify the current fee prescribed under the applicable Rules.
Pre-deposit Examine whether the appeal attracts the statutory pre-deposit requirement and calculate the amount accurately.
Certified Copy Obtain the certified copy of the impugned order wherever required.
Limitation Confirm that the appeal is instituted within the prescribed period.
Paper Book Prepare a properly indexed and paginated compilation.
Professional Tip: Before filing any appeal, prepare a one-page filing sheet recording the limitation period, fee payable, pre-deposit calculation, annexures, certified copy details and the final filing date. This simple practice greatly reduces filing defects and last-minute omissions.

Appendix 9 – Frequently Used Forms in DRT Practice

Although the exact format of pleadings depends upon the facts of each case and the applicable procedural rules, certain documents are routinely encountered in proceedings before the Debt Recovery Tribunal and the Debt Recovery Appellate Tribunal.

Document Purpose
Original Application (OA) Institution of recovery proceedings before the Tribunal.
Written Statement Defence filed by the defendant.
Counter-Claim Independent claim against the applicant.
Claim of Set-Off Adjustment of mutual liabilities.
Interlocutory Application Seeking interim procedural or substantive relief.
Affidavit of Evidence Evidence by way of affidavit.
Written Arguments Final legal submissions.
Appeal before DRAT Challenge to an appealable order of the DRT.
Stay Application Seeking interim protection during pendency of proceedings.
Application before Recovery Officer Relief during execution proceedings.
Practice Note: Maintain updated templates of frequently used pleadings with current statutory references. However, every pleading should be customised according to the facts of the particular case and should never be copied mechanically.

Appendix 10 – Common Abbreviations Used in DRT Proceedings

Abbreviation Meaning
DRT Debt Recovery Tribunal.
DRAT Debt Recovery Appellate Tribunal.
RDB Act Recovery of Debts and Bankruptcy Act, 1993.
SARFAESI Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
ARC Asset Reconstruction Company.
CERSAI Central Registry of Securitisation Asset Reconstruction and Security Interest of India.
NPA Non-Performing Asset.
OA Original Application.
RC Recovery Certificate.
RO Recovery Officer.
IBC Insolvency and Bankruptcy Code, 2016.
RP Resolution Professional.
CoC Committee of Creditors.
CIRP Corporate Insolvency Resolution Process.
PG Personal Guarantor.

Appendix 11 – Latin Maxims Frequently Used in Banking Litigation

Latin Maxim Meaning & Practical Relevance
Audi Alteram Partem No person should be condemned unheard; fundamental principle of natural justice.
Nemo Judex in Causa Sua No one should be a judge in his own cause.
Actus Curiae Neminem Gravabit An act of the Court shall prejudice no one.
Ubi Jus Ibi Remedium Where there is a legal right, there is a legal remedy.
Lex Non Cogit ad Impossibilia The law does not compel the impossible.
Qui Facit Per Alium Facit Per Se He who acts through another acts himself.
Res Judicata A matter finally decided cannot ordinarily be re-litigated.
Res Integra A question not yet settled by judicial precedent.
Bona Fide In good faith.
Mala Fide In bad faith.

Practical Advice

Latin expressions should be used sparingly. Tribunals appreciate clarity over ornamentation. Where a maxim is relied upon, briefly explain its legal relevance instead of merely quoting it.

Appendix 12 – Banking & Insolvency Terminology

Term Meaning
Financial Debt Debt disbursed against consideration for the time value of money.
Operational Debt Debt arising from provision of goods or services.
Secured Creditor A creditor holding a legally enforceable security interest.
Security Interest Right or interest created in favour of a secured creditor over secured assets.
Hypothecation Charge over movable assets without transfer of possession.
Mortgage Transfer of an interest in immovable property to secure repayment.
Guarantee Promise to discharge the liability of another upon default.
Recovery Certificate Certificate issued by the Tribunal enabling execution proceedings.
Moratorium Statutory suspension of specified legal proceedings under the IBC.
Resolution Plan Plan for resolution of insolvency approved in accordance with the IBC.
Office Tip: Maintain an internal office glossary of banking, insolvency and DRT terminology. Consistent use of correct legal terminology improves drafting quality, reduces ambiguity and enhances professional presentation before the Tribunal.

Appendix 13 – Important RBI Circulars Frequently Relied Upon

Although proceedings before the Debt Recovery Tribunal are governed primarily by the Recovery of Debts and Bankruptcy Act, 1993 and the SARFAESI Act, several Reserve Bank of India (RBI) circulars and prudential directions are frequently relied upon by banks, borrowers and tribunals. Practitioners should always verify the latest Master Directions and circulars before relying upon them.

RBI Direction / Circular Practical Relevance
Master Circular on Prudential Norms on Income Recognition, Asset Classification and Provisioning (IRACP) Determination of NPA classification and provisioning norms.
Master Direction on Frauds Reporting and classification of fraud accounts.
Master Circular on Wilful Defaulters Identification and consequences relating to wilful default.
Master Direction on Know Your Customer (KYC) Customer identification and due diligence obligations.
Directions relating to Resolution of Stressed Assets Framework for restructuring and resolution of stressed loan accounts.
Digital Lending Guidelines Applicable to regulated entities undertaking digital lending.
Circulars on One-Time Settlement (OTS) Frequently relied upon during negotiations and settlement proceedings.
Practice Note: RBI directions are periodically updated or consolidated. Before citing any circular, verify that it continues to remain in force and has not been superseded by a subsequent Master Direction or circular.

Appendix 14 – Supreme Court Precedents at a Glance

The following judgments are among the leading authorities frequently referred to in proceedings under the Recovery of Debts and Bankruptcy Act, the SARFAESI Act and allied banking legislation.

Judgment Principle
Mardia Chemicals Ltd. v. Union of India Constitutional validity of the SARFAESI Act and borrower's remedies.
Transcore v. Union of India Simultaneous remedies under the DRT Act and the SARFAESI Act.
United Bank of India v. Satyawati Tondon High Courts should ordinarily not entertain writ petitions where an effective statutory remedy exists.
Authorized Officer, Indian Overseas Bank v. Ashok Saw Mill Scope of powers exercised by the DRT under Section 17 of the SARFAESI Act.
Phoenix ARC Pvt. Ltd. v. Vishwa Bharati Vidya Mandir Maintainability of writ petitions in SARFAESI matters.
Kotak Mahindra Bank Ltd. v. District Magistrate Exercise of powers under Section 14 of the SARFAESI Act.
J. Rajiv Subramaniyan v. Pandiyas Protection of auction process and rights of auction purchasers.
Swiss Ribbons Pvt. Ltd. v. Union of India Important principles governing the Insolvency and Bankruptcy Code.

Office Practice

  • Maintain updated copies of landmark judgments.
  • Prepare short case notes highlighting the ratio decidendi.
  • Record subsequent judgments explaining or distinguishing the decision.
  • Verify whether any judgment has been overruled or modified.

Appendix 15 – Frequently Cited Statutory Provisions

Provision Frequently Invoked For
Section 17, RDB Act Jurisdiction and powers of the DRT.
Section 18, RDB Act Bar of jurisdiction of civil courts.
Section 19, RDB Act Original Applications.
Section 20, RDB Act Appeals before the DRAT.
Section 22, RDB Act Procedure and powers of the Tribunal.
Section 25, RDB Act Recovery through the Recovery Officer.
Section 13, SARFAESI Act Enforcement of security interest.
Section 14, SARFAESI Act Assistance of the District Magistrate / Chief Metropolitan Magistrate.
Section 17, SARFAESI Act Borrower's statutory remedy before the DRT.
Section 18, SARFAESI Act Appeals before the DRAT.
Section 26E, SARFAESI Act Priority of secured creditors.
Quick Tip: Keep a printed copy of these frequently cited provisions in every litigation file. This allows immediate reference during hearings without searching through the Bare Acts.

Appendix 16 – Office Filing Checklist

Pre-Filing Verification Checklist

  • ✓ Jurisdiction verified.
  • ✓ Limitation computed and recorded.
  • ✓ Cause title checked.
  • ✓ Parties correctly described.
  • ✓ Board Resolution / Authorisation attached.
  • ✓ Vakalatnama properly executed.
  • ✓ Court fee verified.
  • ✓ Affidavit signed and verified.
  • ✓ Annexures arranged chronologically.
  • ✓ Documents indexed.
  • ✓ Pages numbered consecutively.
  • ✓ Certified Statement of Account enclosed (where applicable).
  • ✓ Relevant statutory notices annexed.
  • ✓ Paper books prepared for all parties.
  • ✓ Soft copy retained in office records.
  • ✓ Final review completed by the arguing counsel.
Professional Practice Standard: Every pleading should undergo a final review using a standard office checklist before filing. Most Registry objections can be avoided by a structured verification process carried out immediately prior to presentation.

Appendix 17 – Advocate's Quick Reference Tables

The following tables provide a ready reckoner of the statutory remedies ordinarily available in banking recovery litigation. They are intended to facilitate quick decision-making during conferences, drafting and hearings.

Situation Primary Remedy
Recovery of debt by Bank/FI Original Application before the Debt Recovery Tribunal.
Enforcement of secured assets Proceedings under the SARFAESI Act, 2002.
Challenge to SARFAESI measures Application under Section 17 of the SARFAESI Act.
Appeal against DRT Order Appeal before the Debt Recovery Appellate Tribunal.
Challenge to Recovery Officer's Order Appeal under Section 30 of the Recovery of Debts and Bankruptcy Act, 1993.
Corporate Insolvency Proceedings under the Insolvency and Bankruptcy Code, 2016.
Personal Guarantor Insolvency Proceedings under Part III of the Insolvency and Bankruptcy Code.
Quick Office Tip: Whenever multiple statutory remedies appear available, prepare a comparative note analysing jurisdiction, limitation, available interim relief, recovery prospects and practical implications before advising the client.

Appendix 18 – Banking Recovery Checklist

Before Institution of Proceedings

  • ✓ Verify jurisdiction.
  • ✓ Compute limitation.
  • ✓ Verify loan documents.
  • ✓ Verify security documents.
  • ✓ Check Statement of Account.
  • ✓ Confirm NPA classification where applicable.
  • ✓ Examine acknowledgements of liability.
  • ✓ Verify guarantor documentation.
  • ✓ Identify secured assets.
  • ✓ Consider settlement possibilities.
  • ✓ Examine proceedings already pending before any Court or Tribunal.
  • ✓ Prepare litigation strategy note.

Appendix 19 – DRT Hearing Checklist

Item Status Before Hearing
Cause List Verified ✓
Paper Book Complete ✓
Synopsis Prepared ✓
Chronology Updated ✓
Important Judgments Printed ✓
Statutory Provisions Flagged ✓
Instructions from Client Obtained ✓
Interim Relief Prepared ✓
Written Notes Ready ✓
Next Date Diary Updated ✓

During the Hearing

  • Maintain concise oral submissions.
  • Carry original documents wherever required.
  • Refer the Tribunal to page numbers instead of searching through the paper book.
  • Record every order dictated in open Court.
  • Clarify the next date and directions before leaving the Court.

Appendix 20 – Master Office Checklist

Case Opening Checklist

  • Client interview completed.
  • Conflict check conducted.
  • Authority obtained.
  • Physical and digital files opened.
  • Limitation diary created.
  • Chronology prepared.
  • Document checklist completed.
  • Research assigned.

Drafting Checklist

  • Facts verified.
  • Jurisdiction verified.
  • Statutory provisions cross-checked.
  • Judgments updated.
  • Annexures numbered.
  • Affidavit prepared.
  • Pagination completed.
  • Proofreading completed.

Post-Hearing Checklist

  • Order sheet obtained.
  • Client informed.
  • Compliance diary updated.
  • Certified copy applied for (if necessary).
  • Next hearing strategy prepared.
  • Digital records updated.
  • Follow-up tasks assigned.

Key Takeaways

  • Preparation before filing is the foundation of successful DRT practice.
  • Maintain updated office precedents, checklists and statutory compilations.
  • Verify jurisdiction, limitation and authorisation in every matter.
  • Maintain complete paper books with proper indexing and pagination.
  • Update legal research regularly to reflect legislative amendments and recent judgments.
  • Professional case management improves efficiency and client service.

Conclusion

These Appendices have been designed as a practical desk reference for advocates, financial institutions, insolvency professionals, corporate legal departments and students engaged in banking and recovery litigation. By bringing together important statutory provisions, procedural rules, checklists and quick-reference tables in one place, this supplement aims to reduce research time and promote consistent professional practice before the Debt Recovery Tribunal and the Debt Recovery Appellate Tribunal.

Readers are encouraged to supplement these reference materials with the Bare Acts, current Rules, RBI Master Directions and the latest judicial precedents to ensure that every pleading and submission reflects the prevailing legal position.

Professional Disclaimer

This Appendix has been prepared by AVP Legis Chambers exclusively for educational and informational purposes. It is intended to serve as a practical quick-reference guide and should not be construed as legal advice or as a substitute for the applicable statutory provisions, procedural rules or binding judicial precedents.

Although every effort has been made to ensure accuracy, legislative amendments, notifications, judicial decisions and regulatory directions may alter the legal position after publication. Users should independently verify the current law before relying upon any checklist, table or procedural guidance contained in this publication.

Neither AVP Legis Chambers nor the authors accept any liability arising from reliance upon this Appendix without obtaining appropriate professional legal advice.