BANKS FIND DRT A BETTTER RECOVERY MECHANISM

Banks have found the mechanism of Debt Recovery Tribunal (DRT) and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, more helpful. SARFAESI empowers banks to recover their non-performing assets without the intervention of the Court. A borrower aggrieved by the action of the bank can file an appeal with DRT and then with the Debt Recovery Appellate Tribunal (DRAT), but not with any civil court. However, the borrower has to deposit 50% of the dues before an appeal with DRAT.
In addition to DRTs and the SARFAESI, Asset Reconstruction Companies, which buy off the bad loans from the bank and make recovery by themselves, also finding favor with the banks.
In contrast, Lok Adalats, which are also called "Public Courts", have not proved to be a good means of effecting recoveries from bad loans.
Source: http://www.thehindubusinessline.com/2009/11/21/stories/2009112151300600.htm