DRT Case Defence Lawyer for Bank Recovery Disputes ?

Imagine a bank or financial institution files a recovery case against you before Debt Recovery Tribunal. You may be a borrower, guarantor, company, or any defendant, but out of nowhere there you are facing a legal battle encompassing all aspects of loan accounts; securities offered, guarantee provided; Interest calculation, amount sought to be recovered and more. A DRT Case Defence Lawyer will assist the defendant about the facts of the case and the legal issues involved.

In instances where banks or financial institutions seek recovery of debts that qualify as 'Qualifying Debt' from a borrower or any other person under the Recovery of Debts and Bankruptcy Act, 1993 (RDDBF Act), they may file a lawsuit in Debt Recovery Tribunal. The defendant is entitled to present a written statement and accordingly a set-off or counter-claim, if permitted by law.

Why Does Early Defence Matter in a DRT Case?

Business assets of your debtor partner or firm as well as secured properties, personal guarantees and financial planning can be impacted by a DRT proceeding.

Thirty days to file written statement are granted by Section 19 Recovery of Debts and Bankruptcy Act. The Presiding Officer may in his discretion allow a further period not exceeding fifteen days in exceptional circumstances and the reasons for the extension so allowed shall be recorded in writing.

Documents such as loan account, sanction terms, securities offered, guarantees provided, repayments made, restructuring (if any) related documents, notices and the amount bank claims can be analysed by your DRT Case Defence Lawyer.

What Can Be Examined in a DRT Defence?

Defence has to be specific to facts. Issues which may arise depending on facts stated in record can be amount claimed/interest computation/limitation/non-disclosure of loan documents/creation of security/guarantee terms/acknowledgment/repayment/restructuring discrepancies etc. in recovery application. 

Tribunal is not bound by Code of Civil Procedure, it is bound by principles of natural justice and has power to regulate its own procedure by Act.

Advice can also be given to defendant whether pleaded set off or counterclaim is sustainable in law or not. Transaction can give rise to such pleas, but cannot be raised with an intent to stall recovery proceedings.

Bank recovery disputes may also involve parallel SARFAESI actions, secured assets, guarantor exposure, settlement negotiations. Review of record also makes defendant realize what are the issues which can be placed before Tribunal and what are the issues arising because of recovery measures/proceedings.

Can Guarantors Defend a DRT Recovery Case?

Yes. Guarantor can defend a recovery claim if there are grounds, factual/legal. Liability depends upon the guarantee document, transaction & governing law.

Guarantor should not think every bank demand is ipso facto valid.

Can discuss matter with Mr.BK Singh and see position after studying DRT claim,documents and legal position available with you.

What Documents Should a Defendant Preserve?

Key documents can be DRT application, summons, loan documents, sanction note, account passbooks, guarantee deed, mortgage/charge/deed of security, loan repayment documents, bank's letter, loan restructuring documents, settlement letters and previous notices.

Can Settlement Continue During a DRT Case?

The filing of a DRT proceeding does not necessarily stall settlement negotiations between the parties. Banks and borrowers can always attempt to negotiate a settlement even while a DRT case is pending.

Conclusion

A DRT recovery notice is not an ordinary notice.  DRT Case Defence Lawyer You should build your defence based on records,facts and legally sustainable objections.

Frequently Asked Questions

1. What does a DRT Case Defence Lawyer do?

A DRT Case Defence Lawyer assists in reviewing the recovery application, financial documents, account statements and defence material to ascertain issues of legal importance.

2. How much time is given to file a written statement?

Thirty days are typically given by the statute, with the possibility of a fifteen day extension in special cases.

3. Can a borrower object to the amount claimed by the bank?

Yes. Where a borrower can object to calculations or other aspects of the claim, they can be contested with supporting documents and any sustainable legal grounds.

4. Can a Guarantor be added as defendant before DRT?

Yes. Guarantors can be added as defendants where the bank files a claim on a guarantee and makes an allegation of liability arising from the underlying debt.

5. Can counter-claim be filed by a defendant? 

Counter-claims are allowed under the Act in suitable circumstances, and are subject to the statutory conditions and facts of the matter.

6. Can Settlement be done during a DRT case?

Yes. Parties are permitted to discuss settlement during the pendency of the proceedings, but always review the terms of any proposed settlement before agreeing.

7. Are the proceedings before DRT similar to Civil suits?

No. DRT proceedings are controlled by a specialized statute, and the Tribunal administers its own procedure in accordance with the law.

8. What documents are useful while filing defence? 

Loan documents, sanction letters, account statements, guarantee, securities provided, proof of repayment, notices served and any relevant correspondence may be useful.

9. Can interest be challenged? 

Interest can be challenged if the defendant can factually, contractually or legally oppose the amount being claimed by the bank.

10. When should one approach a DRT lawyer? 

One should speak to a lawyer promptly after receiving the summons, recovery application, or any major order from the Tribunal which affects the rights of the defendant.

DRAT Lawyer assists borrowers, guarantors and business with debt recovery proceedings in a service oriented manner. Our lawyers can assist with DRT and DRAT matters including review of Recovery Applications, Written Statements, Documents and related disputes with the bank. You may also consult with Advocate BK Singh for legal evaluation of your case.

GMB , LINKDIEN 

Website - https://www.drtlawyer.com/ 

Read More - DRT Case Status: How Can Borrowers Track Their Tribunal Case Progress?