Important Legal Provisions

1. Section 17 – Jurisdiction DRT has jurisdiction to entertain and decide applications by banks for recovery of debts. Civil courts are barred from entertaining matters that fall within DRT's jurisdiction.

2. Section 19 – Original Application (OA) A bank files an Original Application before the DRT for: a) Recovery of loan amount b) Interest c) Costs d) Enforcement against borrower and guarantor e) Sale of mortgaged property where applicable

3. Sections 25–30 – Recovery Certificate & Recovery Officer After the DRT determines the amount due: It issues a Recovery Certificate.

The Recovery Officer executes it by:

I)Attachment of movable and immovable property ii) Sale through auction iii) Arrest and detention (where permitted by law) iv) Appointment of a receiver v)Garnishee proceedings vi) Attachment of salary and bank accounts

4. Section 31B – Priority to Secured Creditors Inserted in 2016, this gives secured creditors priority over government dues in many situations, subject to overriding statutes such as the Prevention of Money Laundering Act, 2002 where applicable.

5. Section 18 Appeal against DRT orders lies before the Debts Recovery Appellate Tribunal (DRAT), genera