How to Appeal to the DRAT (Debt Recovery Appellate Tribunal) (2026)
A plain guide to appealing a DRT order to the Debt Recovery Appellate Tribunal (DRAT): who appeals, under which law, the pre-deposit you must pay, the limitation period, and the onward remedy. Last verified October 2026.
How-to · Banking · Debt Recovery
If a Debts Recovery Tribunal (DRT) has decided against you, the appeal goes to the Debt Recovery Appellate Tribunal (DRAT), and you usually cannot be heard until you pay a pre-deposit. For a borrower appealing under the SARFAESI Act, the pre-deposit is 50 per cent of the debt due, which the DRAT may reduce to not less than 25 per cent. The provision you use depends on the order you are appealing, so the first step is to read which law the DRT acted under. This guide sets out who appeals, the right provision, the pre-deposit, the limitation, and what comes next. Last verified October 2026.
- Where: appeals from a DRT order go to the DRAT.
- Which law: Section 20 of the RDB Act for a bank recovery order, Section 18 of SARFAESI for a borrower order.
- Pre-deposit: 50% of the debt due, which the DRAT may reduce to not less than 25% for reasons recorded. It is mandatory.
- After the DRAT: no further tribunal appeal; the usual remedy is a writ petition to the High Court, then the Supreme Court by special leave.
01The problem: pay before you are heard
A DRAT appeal is different from an ordinary appeal because of the pre-deposit. For most borrowers, the DRAT will not even entertain the appeal until a large part of the claimed debt is deposited. This is a deliberate filter to stop recovery being stalled by weak appeals.
The Supreme Court has made the rule clear. In Union Bank of India v. Rajat Infrastructure it held that the pre-deposit under SARFAESI is mandatory and cannot be waived. In Sidha Neelkanth Paper Industries v. Prudent ARC (2023) it explained how the 50 per cent figure is calculated. So before you plan an appeal, work out how much you will have to deposit, because that often decides whether an appeal is worth filing.
02Two different appeals
The right provision depends on what the DRT decided. There are two common situations.
- The DRT decided a bank recovery application. Where the DRT decided a bank or financial institution application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (the RDB Act), the appeal to the DRAT lies under Section 20, and the deposit is governed by Section 21.
- The DRT decided a borrower challenge to enforcement. Where the DRT decided a borrower application under Section 17 of the SARFAESI Act, 2002 (a challenge to the secured creditor taking possession or selling the security), the appeal lies under Section 18 of the SARFAESI Act, which has its own deposit rule.
Read the order first
The same DRAT hears both kinds of appeal, but the provision, the deposit base, and some of the procedure differ. Identify whether your DRT order was under the RDB Act (Section 19) or the SARFAESI Act (Section 17) before you file.
03The pre-deposit rule
The pre-deposit is the key hurdle, and the base differs between the two laws.
| Point | RDB Act (s.21) | SARFAESI Act (s.18) |
|---|---|---|
| Who deposits | The person from whom the debt is due | The borrower appealing |
| Base amount | Debt due as determined by the DRT | Debt due, as claimed by the creditor or determined by the DRT, whichever is less |
| Standard deposit | 50% of that amount | 50% of that amount |
| Reduction by DRAT | May be reduced to 25%, for reasons recorded | May be reduced to not less than 25%, for reasons recorded |
Under SARFAESI, the Supreme Court in Sidha Neelkanth (2023) held that the borrower must deposit 50 per cent of the debt due as claimed by the bank, financial institution or assignee, along with the interest claimed in the Section 13(2) notice, and that where the Section 13(4) steps and the auction sale are both challenged the higher figure governs. The DRAT has discretion to reduce the figure, but not below 25 per cent, and only for reasons recorded in writing.
04Who can appeal, where, and when
A borrower, a guarantor, a mortgagor, or a bank aggrieved by the DRT order may appeal, depending on the provision. The appeal goes to the DRAT that has jurisdiction over that DRT.
On limitation, the general period to appeal is 30 days from the date of the DRT order, with the DRAT able to condone delay on sufficient cause. Because the deposit must be arranged, do not leave the appeal to the last day.
05How to file, step by step
- Identify the provision. Decide whether you appeal under Section 20 of the RDB Act or Section 18 of the SARFAESI Act, based on the DRT order.
- Calculate the deposit. Work out 50 per cent of the correct base, and whether you will ask the DRAT to reduce it to 25 per cent with reasons.
- Prepare the appeal. Draft the memorandum of appeal with grounds, attach the DRT order and the documents relied on, and verify by affidavit, in the form prescribed under the DRAT rules.
- Make the deposit. Deposit the pre-deposit (or file an application to reduce it) so the appeal can be entertained.
- File and serve. File with the DRAT registry, pay the fee, and serve the other side. Seek a stay of recovery or sale if you need interim protection.
No deposit, no hearing
The DRAT will not entertain a borrower appeal on the merits until the pre-deposit is made or formally reduced. Treat the deposit as the first task, not an afterthought.
06What comes after the DRAT
There is no further statutory appeal to a tribunal after the DRAT. A party aggrieved by a DRAT order usually moves the High Court by writ petition under Articles 226 and 227 of the Constitution, and from there the Supreme Court may be approached by special leave.
For the wider picture of how matters reach the Supreme Court from tribunals, see appeals from tribunals to the Supreme Court. Debt recovery tribunals were among the bodies reviewed in the recent reform debate, covered in the Tribunal Reforms Act 2021.
07Where Claw fits
Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.
A debt recovery appeal turns on the pre-deposit figure and on how the DRAT and the courts have read Sections 21 and 18. With Claw you can follow a live recovery matter through the DRT, the DRAT and the writ court, watching the cases, orders and hearings across 9,102 courts, benches and forums, and you can search more than 30 crore judgments by section, party or advocate in under five seconds. The coverage runs from Supreme Court rulings since 1950 and High Court rulings since 1990, so the pre-deposit case law is a quick read. Claw does not use your case documents to train its AI models.
Set up a free Claw account to follow your DRT or DRAT matter by party or advocate name and to read how the pre-deposit rule has been applied. To research the wider body of law, see case search across Indian courts.
08Sources and further reading
- India Code (RDB Act 1993 and SARFAESI Act 2002): indiacode.nic.in
- DRT and DRAT (seats, rules and cause lists): drt.gov.in
- Supreme Court of India (Sidha Neelkanth, 2023): main.sci.gov.in
- Claw: clawlaw.in
This guide is general information, not legal advice. The pre-deposit and limitation turn on your facts, so check the current Acts and take advice from counsel before you act.
09Frequently asked questions
How much pre-deposit is needed for a DRAT appeal?
For a borrower appeal under Section 18 of SARFAESI, 50 per cent of the debt due (as claimed by the creditor or determined by the DRT, whichever is less). The DRAT may reduce this to not less than 25 per cent for reasons recorded in writing. The deposit is mandatory and cannot be waived.
Which provision do I use to appeal to the DRAT?
It depends on the DRT order. If the DRT decided a bank recovery application under Section 19 of the RDB Act, appeal under Section 20. If the DRT decided a borrower challenge under Section 17 of the SARFAESI Act, appeal under Section 18 of that Act.
What is the time limit to appeal to the DRAT?
The appeal is generally filed within 30 days of the DRT order, with the DRAT able to condone delay on sufficient cause. Confirm the exact period under the provision you are using, because the deposit must also be arranged in time.
Can the pre-deposit be waived completely?
No. The Supreme Court held in Union Bank of India v. Rajat Infrastructure that the SARFAESI pre-deposit is mandatory. The DRAT can reduce it to not less than 25 per cent, but it cannot waive it entirely.
What remedy is there after the DRAT?
There is no further tribunal appeal. A party aggrieved by a DRAT order usually files a writ petition in the High Court under Articles 226 and 227, and may then approach the Supreme Court by special leave.
Can I track my DRT or DRAT matter in Claw?
Yes. Claw follows cases, orders and hearings across 9,102 courts, benches and forums and searches more than 30 crore judgments in under five seconds, covering the Supreme Court since 1950 and the High Courts since 1990. It tracks and researches the matter but does not give legal advice.