The Debt Recovery Appellate Tribunal (DRAT) is a specialized quasi-judicial institution established under the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act). Its primary function is to serve as the appellate authority for orders passed by the Debt Recovery Tribunals (DRTs).
The DRAT was created to solve the problem of prolonged delays faced by banks and financial institutions in recovering their dues through the conventional civil court system, which was overburdened with commercial litigation. The need for a dedicated forum was highlighted by the Narasimham Committee of 1991, which noted that the absence of such a mechanism allowed Non-Performing Assets (NPAs) to mount in the banking sector. The enactment of the RDB Act, 1993, established a two-tier tribunal system—DRTs at the first instance and DRATs for appeal—to ensure the expeditious adjudication and recovery of debts.
The DRAT's mechanism is governed by the RDB Act, 1993, and the Debt Recovery Tribunal (Procedure) Rules, 1993. An appeal to the DRAT must be filed within 45 days of receiving the DRT's order. A key provision is the mandatory pre-deposit requirement, where an appellant must deposit 50% of the debt amount determined by the DRT before the appeal is admitted. The DRAT, however, has the discretion to reduce this deposit to a minimum of 25% in justified cases. The DRAT is headed by a Chairperson, who must be or have been a Judge of a High Court.
The DRAT is closely connected to the Debt Recovery Tribunals (DRTs), which exercise original jurisdiction for debt recovery claims of ₹20 lakhs or more. It also interfaces significantly with the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, as DRTs and DRATs hear matters arising under this Act as well. More recently, the DRAT's jurisdiction has been expanded to entertain appeals against orders made by the Adjudicating Authority under Part III of the Insolvency and Bankruptcy Code, 2016 (IBC). A recent change includes the introduction of the Debts Recovery Tribunals and Debts Recovery Appellate Tribunals Electronic Filing (Amendment) Rules, 2025, which mandates that pleadings under the RDB Act, 1993, and the SARFAESI Act, 2002, must be filed in electronic form through the e-DRT system. The core function of the DRAT as the appellate body for DRT orders remains the same.