DRAT Appeal under Section 20 RDB Act Limitation, Pre-Deposit, Procedure & Legal Guide 2026
Simply because one receives an unfavorable order from the Debt Recovery Tribunal, doesn’t mean that a banking recovery matter is over. If a person aggrieved by an order made by the DRT is eligible to file an appeal, Section 20 of the Recovery of Debts and Bankruptcy Act, 1993 provides the statutory pathway to Debt Recovery Appellate Tribunal.
A DRAT Appeal under Section 20 RDB Act is NOT the same as a Section 18 SARFAESI appeal. That difference matters when considering the applicable statutory provision, limitation period for filing the appeal, calculation of pre-deposit and even the order against which to appeal.
All too often borrowers realize the difference after a Recovery Certificate has been issued against them.
Assume a company is successfully defending an Original Application brought by a bank under Section 19. The DRT finally orders that a large sum of money is due and payable, and the bank is permitted to obtain a Recovery Certificate. The borrower thinks the account was calculated incorrectly, material documents were not considered and part of the claim should have been dismissed.
There may be grounds to appeal.
But the appellant should not simply gather the record and complain about what the DRT got wrong.
The borrower must also take into account the limitation period of 30 days, Section 21 pre-deposit, appropriate DRAT, filing fees, grounds of appeal, prayer for interim protection and the record to support the appeal.
As stated above, current Section 20 provides that, “(1) An appeal shall lie from an order made, or which is deemed to have been made by a Debt Recovery Tribunal under this Act, except an order made with the consent of the parties, to the Debt Recovery Appellate Tribunal and shall ordinarily be filed within a period of thirty days from the date on which a copy of the order appealed from is received by the appellant.” DRAT has the discretion to accept an appeal after the 30 days if sufficient cause for the delay is shown.
“50% Pre-deposit”. Since the debt has been ordered to be due under Section 19, Section 21 normally requires that the appellant make a pre-deposit of 50% of the Recovery amount. DRAT has the power to lower the amount for reasons to be recorded in writing but not below 25%.
You read that correctly. The percentages just mentioned matter because you will still find older law articles, pleading precedents and poor reproductions that say the pre-deposit should be 75%. In 2016, Parliament amended the statute to change the percentages. In the same stroke, the legislature also reduced the appeal period in Section 20 from 45 days to 30 days.
BK Singh Advocate and DRT Advocates handle cases in DRT and DRAT involving Original Applications, Recovery Certificates, borrower and guarantor liability, setoffs and counterclaims, interim orders and other banking recovery matters.
Why Section 20 DRAT Appeals Matter in India in 2026
An adverse final DRT order can leave a borrower, guarantor or business facing a significant Recovery Certificate. Enforcement can follow from there through attachment, property sale, bank-account action or other recovery processes permitted by the RDB Act.
DRAT timing matters because filing an appeal does not automatically stay recovery proceedings, even if the aggrieved party plans to challenge the DRT at DRAT.
Presently there are 39 DRTs and 5 DRATs across India. The tribunals constitute a network of specialist statute bodies with jurisdiction to adjudicate and provide appellate review for qualifying recovery claims of banks and financial institutions.
Appealing to DRAT can require significant funds for the borrower before getting to the merits of the appeal.
Suppose the DRT awards a creditor ₹4 crore.
Section 21 begins with half of the award demanded up-front ₹2 crore in this example. DRAT may lower this amount for reasons recorded in the order, but the statutory minimum would typically be ₹1 crore or 25% of the awarded amount.
The financed required under that section can become material for a distressed business.
The requirement is different for banks. Since Section 21(a) speaks to “person from whom such amount is due,” the appealing creditor bank is not normally in the debtor’s shoes to have to make the Section 21 pre-deposit just to pursue its own appeal.
DRAT isn’t only for borrowers. Personal guarantors, corporate guarantors and others liable in respect of a DRT order will have to determine if they are “persons aggrieved” and if Section 21 applies to them and their appeals.
BK Singh Advocate: Normally, what are the three things you do after receiving an adverse order from DRT? Here are my three things: (1) understand what was decided (2) check when order was received and (3) Check if Section 21 pre deposit is required to be made in respect of the appeal.
Quick Facts About Section 20 RDB Act Appeals
- Appeal from DRT to DRAT
- Section 20 provides an appeal to DRAT against the qualifying orders passed or deemed to have been passed by DRT under RDB Act.
- Observe that consent order is not covered under Section 20 appeal route.
- Note further that the current limitation period is of 30 days from the date of receipt of a copy of the order of the DRT.
- DRAT has the power to condone delay in filing of appeal under Section 20 if sufficient cause for delay is shown to them.
- Section 21 of RDB Act ordinarily mandates that a person against whom debt has been awarded under Section 19 shall deposit 50% of the debt due before filing appeal.
- DRAT can lower the rate of deposit to a minimum of 25% and ought to give reasons in writing for lowering the rate of deposit.
- The Apex Court has ruled that Section 21 allows partial waiver but not total waiver where statutory deposit is required.
What Is a DRAT Appeal under Section 20 RDB Act?
A Section 20 appeal is the statutory mode of appellate redress against orders made by a Debt Recovery Tribunal which are eligible for appeal under the RDB Act. By far the most common context is with reference to an Original Application filed by a bank/financial institution under Section 19.
Section 20 itself is very widely drafted. It permits “any person aggrieved” by an order of the Tribunal made, or deemed to have been made, under the Act to appeal to the Appellate Tribunal that has jurisdiction. The principal express exception is a consent order.
DRAT may on hearing the parties confirm, modify or set aside the order appealed from. The statute goes on to say that appeals shall be disposed of as expeditiously as possible and that efforts should be made to dispose of appeals within six months of receipt.
A Section 20 appeal must not be confused with a review petition before DRT. Nor must it be confused with appeals against SARFAESI orders under Section 18 of the SARFAESI Act.
Advocates dealing with DRT matters may first need to understand the statutory basis of the order passed by DRT before identifying the applicable appellate provision.
What Grounds Can Be Raised in a Section 20 Appeal?
An appeal ought to pinpoint the legal or factual errors made in the DRT order.
Instead of simply reproducing the written statement.
ADMETERELO DEBT
The DRT may have accepted an incorrect amount, or failed to consider payments made towards the debt or relied on a computation that is unsustainable in law.
INTEREST
Issues in this regard usually relate to contractual interest, penalty component, appropriation, computation after default or rate awarded by DRT.
The facts pertaining to the original loan documents and the findings will be critical to determine the challenge.
GUARANTEE LIABILITY
The guarantor can appeal against findings relating to execution, scope, enforceability or extent of guarantee liability.
OVERLOOKING MATERIAL PROOF
A party can argue that DRT turned down crucial documents on record which affected the outcome of the case.
WRONGFUL REJECTION OF DEFENCE
DRT / Presiding Officer may have wrongly dismissed the defence on grounds of limitation, discharge, compromise and settlement, payment, jurisdiction or any other ground.
ISSUES WITH COUNTERCLAIM
The defendant can appeal against an order passed relating to maintainability or adjudication on a counterclaim.
PROCEDURAL JUSTICE
A gross defect in granting an opportunity of hearing or consideration of material placed on record could be relevant.
ISSUES RELATING TO DRT’S JURISDICTION
The appeal can contest if DRT possessed territorial jurisdiction, pecuniary jurisdiction or subject-matter jurisdiction to entertain the case.
AMOUNT IN RECOVERY CERTIFICATE
If the amount shown in the final Recovery Certificate differs from what was adjudicated, the order for granting the same can be challenged in appeal.
Ordinarily, DRT Advocates views every material ground of appeal as a reply to a specific finding in the DRT order rather than raising a boilerplate allegation.
What Documents Are Needed for a Section 20 Appeal?
Documents differ from case to case but the following may constitute a working file.
DRT Final Order
This is your Petition.
File a clean copy and any certified copy necessary for the relevant process.
Recovery Certificate
Attach if issued. Calculations under Section 21 and consequences of recovery may depend on the amount determined.
Original Application
DRAT needs to know what the bank applied for.
Written Statement
Your appeal may turn on whether a defence was properly raised before DRT.
Rejoinder
If the bank further replied, attach the relevant pleading.
Counterclaim and Reply
Include if counterclaim issues are being appealed.
Evidence Affidavits
Attach material evidence relied upon at the DRT stage.
Loan Documents
Sanction letters, facility agreements, mortgage documents and guarantees may be necessary depending on your grounds.
Statements of Account
Account calculations may come into their own where the amount determined is challenged.
Settlement or OTS Documents
If payment or compromise was part of the defence, keep the entire written record.
DRT Interim Orders
Help explain procedural history.
Proof of Receipt of Final Order
Essential for limitation purposes.
Condonation Documents
Medical certificates, corporate letters, earlier proceedings or any other evidence should be filed to support any explanation for delays.
Pre-Deposit Proof
If Section 21 is applicable, keep a record of the deposit and any reduction order.
Corporate Authorisation
Companies should ensure they have a proper board resolution, power of attorney or authorised representative documentation in place.
Vakalatnama
If you have instructed a lawyer, then the vakalatnama should accompany your filing.
BK Singh Advocate can arrange documents chronologically so that your appeal record supports the grounds.
Is DRAT Bound by the Code of Civil Procedure?
As is applicable in a regular civil court.
DRT & DRAT are not governed by the Code of Civil Procedure, 19 convictions ie NOT bound by the Procedure laid down in CPC.
They however are to be guided by the principles of natural justice. They may also regulate their own procedure subject to the Act & Rules
Section 22. Powers of Debt Recovery Tribunal and Debt Recovery Appellate Tribunal.- (1) Save as otherwise provided in this Act, the Tribunal and the Appellate Tribunal shall not be bound by the procedure laid down in the Code of Civil Procedure, 19%3 , but shall in all respects be guided by the principles of natural justice and may regulate their own procedure subject to the provisions of this Act and the Rules.
However
The statute has conferred upon these tribunals certain powers of a civil-court
Such as:
- Issuing summons
- Discovery and production of documents
- Evidence on affidavit, issuance of commissions
- Review
- Dismissal of applications for default
- Setting aside certain ex parte / default orders passed by them etc.
“Not bound by CPC” doesn’t mean people can just scribble something on a piece of paper and call it Pleading and that evidence can be led in whatever manner desired.
Documents & Pleadings are still required to be drafted properly.
When Should a DRAT Lawyer Be Consulted?
Get it reviewed at the earliest when-
- DRT has confirmed the bank's OA;
- Recovery certificate is passed;
- huge interest is awarded;
- Personal guarantor liability is fixed;
- your set off is rejected;
- Bank's claim is partly rejected & Bank desires to appeal;
- 30 days period is ticking away;
- Appeal is already delayed;
- Amount under Section 21 is doubtful;
- Want reduction from 50% to 25%
- The enforcement proceedings have begun;
- Property is likely to be attached/auctioned;
- An urgent stay has to be obtained;
- Corporate authorization has to be planned;
It is doubtful which jurisdiction DRAT will hear the appeal.
BK Singh Advocate can review the DRT order even before your client gets into the process of filing an appeal, where Section 21 amounts to a huge deposit.
How DRT Advocates Can Help With a Section 20 Appeal
DRT Advocates helps borrowers, guarantors, banks, companies and other eligible parties in appellate proceedings from orders passed by DRT.
Services include:
- reviewing the challenged DRT order;
- identifying the findings in the order which can be appealed against;
- computing limitation;
- drafting condonation applications;
- analysing Section 21 requirement;
- drafting an application for reduction of predeposit;
- drafting memorandum of appeal;
- processing the appellate record;
- drafting interim relief applications;
- reviewing Recovery Certificate (RC) proceedings;
- responding to objections from registry; and
- representing clients in appellate proceedings.
BK Singh Advocate can determine whether the appeal truly challenges the debt determination or raises an independent issue such as a setoff/counterclaim. This distinction can make a difference in Section 21.
No appearance necessarily means that the appeal will be admitted, that the deposit will be reduced/stayed. Nor does it guarantee success on the merits.
The goal is to present whatever case is available via the correct statutory pathway with proper documents and well framed grounds.
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Frequently Asked Questions
1. What is meant by DRAT appeal under section 20 RDB Act?
A Section 20 appeal under the RDB Act is a statutory appeal available to a person aggrieved by an eligible order made or deemed to have been made by the DRT.
Appeal is filed before DRAT having jurisdiction and a consent order of DRT is expressly barred from appeal under section 20.
2. What is the limitation period for filing a Section 20 DRAT appeal? Are appeals still limited to 45 days?
The current limitation period is 30 days from the date of receiving a copy of the DRT order.
Previously orders could be appealed within 45 days. The period for filing was reduced to 30 days from receipt of order by the 2016 amendment.
3. Can DRAT allow an appeal after 30 days? If yes, on what conditions?
Yes.
Section 20 allows DRAT to entertain an appeal after the expiry of 30 days where sufficient cause is established for not filing within the specified period.
The applicant should clearly explain the dates rather than relying on general averments.
4. What is the amount of pre-deposit required under Section 21 RDB Act for borrower/appellant?
50% of debt due (as determined by DRT under Section 19) is the statutory starting point where Section 21 applies.
DRAT has the discretion to lower this amount for recorded reasons but not below 25%.
5. Can DRAT waive the requirement of Section 21 pre-deposit altogether?
No. At least not where the statutory pre-deposit requirement applies.
Total waiver is not supported by Section 21 which establishes a range of 50% to 25% as decided by DRAT.
This was held by the Supreme Court in Kotak Mahindra Bank v. Ambuj A. Kasliwal.
6. Can amount of pre-deposit be automatically reduced to 25% of debt determined by DRT?
No.
25% is a statutory minimum amount and is not an automatic fallback amount that can applied to every appellant.
DRAT has to exercise its discretion and give reasons to reduce the ordinary requirement of 50%.
7. If bank itself is filing appeal then is it required to make pre-deposit under Section 21?
No. Section 21 applies to appeals by a person from whom debt is due.
It is not applied to creditors just because they wish to appeal against an unfavourable order of DRT.
8. Can you file an appeal against an interim order passed by DRT?
Appeals have been allowed against certain categories of interlocutory orders.
Section 20 refers broadly to orders made by the DRT under the Act.
Maintainability and applicability of section 21 pre-deposit would depend on the nature of the order and the relief sought.
9. Is Section 21 pre-deposit required in every appeal under Section 20?
No. Section 21 applies to an appeal involving determination of debt under Section 19 and a person from whom that amount of debt is due.
For instance the Delhi High Court ruled that an appeal seeking merely the rejection of an independent counterclaim did not require deposit under Section 21 where the original debt determination by the bank was not challenged.
10. What is the DRAT filing fee for Section 20 appeals?
As per Rule 8, filing fee for an appeal is ₹12,000 where debt is less than ₹10 lakh; ₹20,000 where it is ₹10 lakh or more but less than ₹30 lakh and ₹30,000 where debt is ₹30 lakh or more.
The filing fee is distinct from Section 21 pre-deposit requirement.
11. Section 20 appeal limitation: 30 days or 45 days?
The limitation period is presently 30 days.
Previously period was 45 days but 2016 amendment substituted 30 days in place of 45 with effect from 1 September 2016.
12. Can guarantor file an appeal under section 20 RDB Act?
Guarantor against whom an order is passed by DRT would qualify as aggrieved person if it is affected adversely by that order.
If the amount of debt has been determined against that guarantor in the Section 19 proceeding, then requirement of section 21 pre-deposit would also need to be considered.
13. Is filing of appeal under Section 20 RDB Act automatic stay on Recovery Certificate?
No. Appeal filed under section 20 should not be assumed to automatically operate as stay of Recovery Certificate.
Where the opposite party is continuing with recovery, then appellant should consider making a specific application for interim relief seeking such stay.
14. Can Recovery Officer continue proceedings against borrower/appellant even after filing DRAT appeal?
Yes. Proceedings can continue unless stayed by a competent court order or law.
Appellant should therefore move for an interim order if urgent attachments or sales are happening and cannot rely solely on the filing of appeal.
15. Is it possible to file appeal against a consent order passed by DRT?
No. Section 20(2) explicitly states that no appeal shall lie from an order of DRT which is made with the consent of parties.
Nature of order should be reviewed if consent itself is disputed in any manner.
16. Is certified copy of DRT order mandatory for filing appeal under section 20?
Order passed by DRT is required to be placed before DRAT as part of the appeal record.
DRAT Procedure Rules, 2016 also contains requirements about copies of orders to be filed along with appeal.
Recent e-filing directions and registry instructions should also be reviewed as e-filing procedures now apply to pleadings by applicants.
17. Can we file new evidence before DRAT?
Appeal is meant to challenge DRT order on the record that was placed before the Tribunal.
Request to file fresh evidence may be viewed sceptically if made at appellate stage and should be properly grounded rather than treated as opportunity to start case afresh.
18. Settlement can be done during pendency of DRAT appeal right?
Yes. Parties are free to negotiate a settlement, restructuring or repayment even during the pendency of appeal.
Settlement discussions do not by themselves act as a stay of Recovery Certificate issued by DRT or override statutory requirements for filing fee and pre-deposit unless effective settlement is entered into or reflected in an order by tribunal.
19. Is Section 20 RDB Act appeal same as Section 18 SARFAESI appeal?
No. Section 20 refers to appeals from DRT orders made under RDB Act.
These would typically be appeals from Section 19 recovery proceedings initiated by banks.
Section 18 on the other hand refers to SARFAESI Act appeals from DRT orders passed under Section 17 SARFAESI.
Deposit requirement are also worded differently under section 21 RDB Act and section 18 SARFAESI.
20. What are the things which should be checked before filing DRAT Appeal under section 20?
Date of order by DRT, receipt of order, limitation of 30 days, filing before correct DRAT, grounds of appeal,
Whether section 21 applies and calculating amount of pre-deposit, calculating prescribed fee for filing appeal,
Checking documents required for filing appeal and if urgent interim relief will be needed.
DRT advocates can guide you on these issues before filing so that all statutory and procedural requirements are known upfront.
Final Thoughts
An appeal under Section 20 RDB Act should never be drafted like a fresh Written Statement before DRT.
This is APPPELLATE litigation, challenging a LIVE order of a STATUTORY tribunal.
Keep these statutory provisions in mind:
Section 20. Aggrieved person may appeal to Appellate Tribunal against certain orders of DRT.
Obvious. Not a consent order.
Limitation of 30 days from date of receipt of order. Extension available for enough reason.
Section 21. No appeal to lie unless the appellant has deposited twenty-five percentum of the amount as may be determined.
Important. Condition applies if Section 21. (1) applies.
Normally 50% of the debt adjudged under Section 19 is required as a pre-deposit. DRAT has power to reduce such amount. But not below 25%.
See Supreme Court ruling that statutory bail is not available i.e. waiver cannot be granted where Section 21 condition applies.
However, pre-deposit should not be mechanically insisted upon in every appeal merely because the appellant happens to owe some money to a bank. See the order on interim protection in the context of the counterclaim decision passed by Delhi High Court. Different order, different relief.
If you are a business person or a borrower already confronted with Recovery Certificate proceedings, consider these questions BEFORE you get caught up in attachment or sale proceedings.
BK Singh Advocate practices before DRT and DRAT regarding Section 19 recovery proceedings, Section 20 appeals, Section 21 pre-deposit conditions, Liability of Guarantors, Filing of Counterclaims, Recovery Certificates and related interim proceedings in Delhi NCR and elsewhere in India depending on the forum and facts.
Are you having a legal problem in DRAT Appeal under Section 20 RDB Act? You don't have to deal with it alone. Let's discuss your situation and explore the appropriate approach to handle it.
There is no pressure or difficult legal language, only clear information based on the circumstances of your DRAT Appeal under Section 20 RDB Act matter.
