Jurisdiction of Debts Recovery Tribunals

The jurisdiction of the Debts Recovery Tribunals (DRTs) is limited to the following:

  • Recovery of debts due to banks and financial institutions.
  • The debts must be secured by mortgage of immovable property.
  • The amount of debt must be more than Rs. 1 lakh.

The DRTs do not have jurisdiction over the following:

  • Recovery of debts due to other creditors.
  • Recovery of debts that are not secured by mortgage of immovable property.
  • Recovery of debts that are less than Rs. 1 lakh.

Here are some MCQs on the jurisdiction of Debts Recovery Tribunals (DRTs) under the Recovery of Debts and Bankruptcy Act, 1993:

  1. What is the jurisdiction of the Debts Recovery Tribunals (DRTs)?
    • Recovery of debts due to banks and financial institutions.
    • Recovery of debts due to all creditors.
    • Recovery of debts that are secured by mortgage of immovable property.
    • Recovery of debts that are less than Rs. 1 lakh.
    • The answer is Recovery of debts due to banks and financial institutions. The DRTs have jurisdiction over the recovery of debts due to banks and financial institutions only.
  2. What are the requirements for a debt to be recoverable by a DRT?
    • The debt must be secured by mortgage of immovable property.
    • The amount of debt must be more than Rs. 1 lakh.
    • Both (a) and (b)
    • None of the above
    • The answer is Both (a) and (b). The debt must be secured by mortgage of immovable property and the amount of debt must be more than Rs. 1 lakh for it to be recoverable by a DRT.