In plain words: when a bank wants the tribunal to formally decide and recover a debt, it files an Original Application (OA) in the DRT. Understanding it helps you defend yourself.
What an OA is
An Original Application is the bank's recovery case in the DRT — it sets out the debt, the default and the security, and asks the Tribunal to pass an order for recovery against the borrower (and guarantors).
How the process runs
- The bank files the OA with documents and the required fee.
- The borrower (defendant) is served and files a reply/written statement.
- The DRT considers the pleadings and evidence.
- It passes an order and issues a Recovery Certificate for the amount due.
The borrower's defence
This is the borrower's chance to contest the claim — disputing the amount, pointing to payments, raising limitation, questioning the security or the bank's conduct, and raising any counterclaim. A proper, timely written statement is vital.
OA vs SARFAESI
A bank may run the OA (to adjudicate the debt) and SARFAESI (to enforce the security) in parallel. The OA establishes the debt; SARFAESI enforces the mortgage. Borrowers should attend to both.
After the certificate
Once a Recovery Certificate issues, the Recovery Officer executes it — by attaching and selling assets — a stage with its own procedure and safeguards.
Frequently asked questions
What is an OA? The bank's recovery application in the DRT to have the debt adjudicated.
Can I defend the OA? Yes — by filing a written statement contesting the claim.
Can the bank run OA and SARFAESI together? Yes — one adjudicates the debt, the other enforces the security.
How Vakil Help Desk helps
Vakil Help Desk advises borrowers and guarantors on SARFAESI notices, DRT and DRAT proceedings, auctions, one-time settlements and stressed-asset disputes. If your bank has issued a demand or possession notice, or you are facing recovery, we can help you respond in time.
This article is for general legal awareness, not individual legal advice. SARFAESI and DRT procedure, time limits and thresholds are set by statute and RBI norms and can change, and the right step depends on your facts and the current position. Please consult a lawyer before acting on a recovery notice.