ASSESSING THE INEFFICIENCY OF DEBT RECOVERY TRIBUNALS

Debt recovery is a crucial aspect of financial systems worldwide, ensuring the smooth functioning of economies by mitigating risks associated with unpaid debts. In the Indian context, Debt Recovery Tribunals (DRTs) were established with the aim of expediting the recovery of debts by banks and financial institutions. However, despite their inception, DRTs have faced criticism for their inefficiency in resolving disputes and recovering debts promptly. This paper aims to analyze the factors contributing to the inefficiency of DRTs in India through a comparative analysis with global practices. Additionally, it explores potential reforms to enhance the effectiveness of DRTs and improve debt recovery mechanisms in India.