Banking · Recovery of Debts and Bankruptcy Act
A Scheduled Commercial Bank decides to file an Original Application (OA) with the Debt Recovery Tribunal (DRT) against a borrower for the recovery of a loan of Rs. 50 Lakh. Which of the following statements correctly captures the most critical initial compliance and legal requirements under the Recovery of Debts and Bankruptcy (RDB) Act, 1993, as amended?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The application must be filed at the DRT having jurisdiction over the location of the collateral property, and the filing fee is 1% of the claim without any maximum cap.
- 2The debt amount is above the minimum pecuniary jurisdiction limit, the application must be filed within the limitation period of three years, and must be filed in electronic form (e-DRT).✓
- 3The bank must file the OA within 1 year from the date the loan was classified as NPA and pay a fixed court fee of Rs. 1,50,000/-.
- 4The bank must first exhaust all remedies under the SARFAESI Act, 2002, before approaching the DRT, as the minimum OA limit is Rs. 1 Crore.
Correct answer
The debt amount is above the minimum pecuniary jurisdiction limit, the application must be filed within the limitation period of three years, and must be filed in electronic form (e-DRT).
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