DRT: Debt Recovery Tribunal
The Debt Recovery Tribunal (DRT) is a specialized court established under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act) to expedite the recovery of debts due to banks and financial institutions. The DRT has the power to hear and decide cases related to the recovery of debts exceeding Rs. 20 lakhs.
DRAT: Debt Recovery Appellate Tribunal
The Debt Recovery Appellate Tribunal (DRAT) is a higher court that hears appeals against the orders of the DRT. Any party aggrieved by an order of the DRT can file an appeal before the DRAT within 30 days of the order.
OA: Original Application
An Original Application (OA) is a legal document filed before the DRT by a bank or financial institution seeking the recovery of a debt. The OA contains details of the debt, the borrower, and the security offered by the borrower for the loan.
MA: Miscellaneous Application
A Miscellaneous Application (MA) is a legal document filed before the DRT for any relief or direction that is not covered under the OA. For example, if the bank wants to seek a clarification on a particular issue related to the case, it can file an MA before the DRT.
OTS: One Time Settlement
One Time Settlement (OTS) is a scheme offered by banks and financial institutions to settle the outstanding dues of a borrower in a single payment. Under the OTS scheme, the bank or financial institution agrees to waive off a part of the outstanding dues if the borrower agrees to pay the remaining amount in a lump sum.