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CHAPTER III
DEBTS RECOVERY TRIBUNAL
RULES,
OFFICER) RULES, 2010
DEBTS RECOVERY APPELLATE
(PROCEDURE) RULES, 1994
AND ADMINISTRATIVE
RULES,
DEBTS RECOVERY TRIBUNALS (REFUND OF COURT FEE) RULES, 2013
Recovery of Debts 1[and Bankruptcy] Act, 1993*
[51 OF 1993]
An Act to provide for the establishment of Tribunals for expeditious adjudication and recovery of debts due to banks and financial institutions 2[, insolvency resolution and bankruptcy of individuals and partnership firms] and for matters connected therewith or incidental thereto.
BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows :—
CHAPTER I PRELIMINARY
Short title, extent, commencement and application.
1. (1) This Act may be called the Recovery of Debts 1[and Bankruptcy] Act, 1993.
(2)It extends to the whole of India except the State of Jammu and Kashmir.
(3)It shall be deemed to have come into force on the 24th day of June, 1993.
2a(4) 3[Save as otherwise provided, the provisions of this Code†] shall not apply where the amount of debt due to any bank or financial institution or to a consortium of banks or financial institutions is less than ten lakh rupees or such other amount, being not less than one lakh rupees, as the Central Government may, by notification, specify.
*27-8-1993.
†Should be “Act”.
1. Substituted for “Due to Banks and Financial Institutions” by the Insolvency and Bankruptcy Code, 2016, w.e.f. 1-12-2019 (insofar as they relate to personal guarantors to corporate debtors).
2. Inserted, ibid.
2a. Notification No. S.O. 4312(E), dated 6-9-2018.—Whereas, sub-section (4) of section 1 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993) provides that the provisions of the said Act shall not apply where the amount of debt due to any bank or financial institution or to a consortium of banks or financial institutions is less than ten lakh rupees or such other amount, being not less than one lakh rupees, as the Central Government may, by notification, specify; And whereas, the Central Government has considered it necessary to raise the pecuniary limit from ten lakh rupees to twenty lakh rupees for filing application for recovery of debts in the Debts Recovery Tribunals by such banks and financial institutions.
(Contd. on page 2)
COMMENTS
SECTION NOTES
u Debt Recovery Tribunals (DRTs): This Act provides for the establishment of Debt Recovery Tribunals (DRTs) for expeditious adjudication and recovery of debts due to banks and financial institutions.
u Pecuniary limit for filing application for recovery of debts in DRTs by bank/FI/consortium [Section 1(4)]: The Central Government, has vide Notification No. S.O. 4312(E), dated 6-9-2018, raised the pecuniary limit from ten lakh rupees to twenty lakh rupees for filing application for recovery of debts in the Debts Recovery Tribunals by such banks and financial institutions. With effect from 6-9-2018, banks/FIs cannot file applications in DRTs for recovery of debts less than Rs. 20,00,000.
CASE LAWS
u Section 1(4) of RDB Act relates to original jurisdiction of Debts Recovery Tribunal to entertain an application of banks or financial institutions for recovery of their dues from borrowers under said Act and by no means said provisions can be construed to have any bearing on jurisdiction conferred by SARFAESI Act to entertain an appeal under section 17 against any decision of secured creditor under section 13(4) - State Bank of India v. Ramkrishna Builders [2015] 60 taxmann.com 422/132 SCL 703 (Calcutta).
Definitions.
2. In this Act, unless the context otherwise requires,—
(a) “Appellate Tribunal” means an Appellate Tribunal established under sub-section (1) of section 8;
(b) “application” means an application made to a Tribunal under section 19;
(c) “appointed day”, in relation to a Tribunal or an Appellate Tribunal, means the date on which such Tribunal is established under sub-section (1) of section 3 or, as the case may be, sub-section (1) of section 8;
(d) “bank” means—
(i) a banking company;
(ii) a corresponding new bank;
(iii) State Bank of India;
(iv) a subsidiary bank; or
(v) a Regional Rural Bank;
(Contd. from page 1)
Now therefore, in exercise of the powers conferred by sub-section (4) of section 1 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, the Central Government hereby specifies that the provisions of the said Act shall not apply where the amount of debt due to any bank or financial institution or to a consortium of banks or financial institutions is less than twenty lakh rupees *but shall continue to apply to debts in respect of which an application for recovery has been filed before the Debts Recovery Tribunal prior to the date of publication of this notification, that is to say, the 6th day of September, 2018.
* Italicised words were inserted by S.O. 2478(E), dated 11-7-2019.
3. Substituted for “The provisions of this Act” by the Insolvency and Bankruptcy Code, 2016, w.e.f. 1-12-2019 (insofar as they relate to personal guarantors to corporate debtors).
4[(vi) a multi-State co-operative bank;]
(e) “banking company” shall have the meaning assigned to it in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
5[(ea) “Chairperson” means a Chairperson of an Appellate Tribunal appointed under section 9;]
(f) “corresponding new bank” shall have the meaning assigned to it in clause (da) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
6[(g) “debt” means any liability (inclusive of interest) which is claimed as due from any person 6a[or a pooled investment vehicle as defined in clause (da) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956),] by a bank or a financial institution or by a consortium of banks or financial institutions during the course of any business activity undertaken by the bank or the financial institution or the consortium under any law for the time being in force, in cash or otherwise, whether secured or unsecured, or assigned, or whether payable under a decree or order of any civil court or any arbitration award or otherwise or under a mortgage and subsisting on, and legally recoverable on, the date of the application 7[and includes any liability towards debt securities which remains unpaid in full or part after notice of ninety days served upon the borrower by the debenture trustee or any other authority in whose favour security interest is created for the benefit of holders of debt securities or;]]
7[(ga) “debt securities” means debt securities listed in accordance with regulations made by the Securities Exchange Board of India under the Securities and Exchange Board of India Act, 1992 (15 of 1992);]
(h) “financial institution” means—
(i) a public financial institution within the meaning of *section 4A of the Companies Act, 1956 (1 of 1956);
8[(ia) the securitisation company or reconstruction company which has obtained a certificate of registration under sub-section (4) of section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002);]
7[(ib) a debenture trustee registered with the Board and appointed for secured debt securities;]
4. Inserted by the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2012, w.e.f. 15-1-2013.
5. Inserted by the Recovery of Debts Due to Banks and Financial Institutions (Amendment) Act, 2000, w.r.e.f. 17-1-2000.
6. Substituted, ibid.
6a. Inserted by the Finance Act, 2021, w.e.f. 1-4-2021.
7. Inserted by the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016, w.e.f. 1-9-2016.
8. Inserted by the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2004, w.e.f. 11-11-2004.
*Now section 2(72) of the Companies Act, 2013.
RECOVERY OF DEBTS AND BANKRUPTCY ACT 1993 WITH RULES – BARE ACT WITH SECTION NOTES
AUTHOR : Taxmann's Editorial Board
PUBLISHER : Taxmann
DATE OF PUBLICATION : November 2025
EDITION : 2026 Edition
ISBN NO : 9789371264655
NO. OF PAGES : 108
BINDING TYPE : Paperback
Rs.
175
DESCRIPTION
Recovery of Debts and Bankruptcy Act 1993 with Rules [Bare Act with Section Notes] by Taxmann is a comprehensive legal reference presenting the consolidated and updated text of India's key legislation on debt recovery and bankruptcy. The 2026 Edition incorporates all amendments and notifications up to date, including integration with the Insolvency and Bankruptcy Code, 2016 and the adoption of e-filing procedures under the latest Rules. Each section is supplemented with Taxmann's interpretative Section Notes, which provide legislative insight, judicial interpretation, and practical analysis, supported by landmark case law. This book is intended for the following audience:
• Legal Practitioners & Law Officers
• Banks, Financial Institutions & ARCs
• Tribunal Officials, Recovery Officers & Regulators
• Corporate Counsels, NBFCs & Compliance Officers
• Academicians, Law Students & Researchers
The Present Publication is the 2026 Edition, covering the amended and updated text of the Recovery of Debts and Bankruptcy Act [Act No. 51 of 1993] and Rules, with the following noteworthy features:
• [Authentic & Updated Text] Full statutory text of the Recovery of Debts and Bankruptcy Act 1993 (RDB Act), incorporating all amendments under the Insolvency and Bankruptcy Code 2016
• [Pre-amendment References] Includes footnoted text of prior provisions for historical context and applicability
• [Section Notes with Case Law] Explains each provision with judicial precedents from the Supreme Court and High Courts
• [Allied Rules & Notifications] Covers major procedural and administrative rules framed under the Act
• [User-friendly Format] Marginal notes, running section numbers, and structured contents for easy navigation
• [Digital Compliance Coverage] Incorporates the DRT & DRAT Electronic Filing Rules 2020 (amended 2025), establishing the mandatory e-DRT system
• [Cross-referenced Laws] Links to relevant provisions under the SARFAESI Act 2002 and the Insolvency and Bankruptcy Code 2016
