A scheduled bank granted a term loan of seventy-five crore rupees to a company which defaulted in repayment. The bank now wishes to recover its dues. Under the Recovery of Debts and Bankruptcy Act, 1993, which statement is correct?

Under the Recovery of Debts and Bankruptcy Act, 1993, a bank or financial institution may recover its dues by making an application to the Debts Recovery Tribunal under Section 19, provided the claim exceeds the pecuniary threshold fixed under the Act. Section 34 bars civil courts from entertaining any suit or proceeding in respect of a debt within the Tribunal's jurisdiction, so the bank is not required to obtain a decree from a civil court first. No prior arbitration is mandated, and no one-year limitation on filing an application with the Tribunal is prescribed by the Act; an application founded on a debt follows the ordinary law of limitation. The Tribunal adjudicates the claim and issues a recovery certificate, enforceable through the modes in Section 25.