{"id":20650,"date":"2024-09-22T08:58:27","date_gmt":"2024-09-22T03:28:27","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=20650"},"modified":"2025-04-06T02:43:50","modified_gmt":"2025-04-05T21:13:50","slug":"debt-recovery-of-tribunal","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/debt-recovery-of-tribunal\/","title":{"rendered":"Debt Recovery of Tribunal"},"content":{"rendered":"<h2><strong>About Debt Recovery Tribunals (DRTs):<\/strong><\/h2>\n<ul>\n<li>DRTs are specialized <strong>judicial bodies established under<\/strong> the <strong>Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (DRT Act).<\/strong><\/li>\n<li>RTs play a crucial role in enforcing creditor rights and expediting debt recovery processes under Indian law.<\/li>\n<li><strong>Types of Cases Handled<\/strong>:\n<ul>\n<li>Their primary mandate is to adjudicate and <strong>resolve disputes concerning debt recovery from banks, financial institutions<\/strong>, and other specified entities.<\/li>\n<li>DRTs <strong>can take cases from banks<\/strong> for disputed <strong>loans above Rs 20 Lakh.<\/strong><\/li>\n<li>The Securitisation and Reconstruction of Financial Assets &amp; Enforcement of Security Interest Act, 2002 <strong>(SARFAESI Act<\/strong>) <strong>provides access to banks<\/strong> and financial institutions covered under the Act <strong>for recovery of secured debts<\/strong> from the borrowers <strong>without the<\/strong> <strong>intervention of the Courts at the first stage.<\/strong><\/li>\n<li><strong>Securitisation Appeals (SAs<\/strong>) <strong>can be filed with the DRTs<\/strong> by those aggrieved against action taken by secured creditors under the SARFAESI Act.<\/li>\n<\/ul>\n<\/li>\n<li>The DRT has the <strong>following structure:<\/strong>\n<ul>\n<li><strong>President<\/strong>: A <strong>judicial officer appointed <\/strong>by the <strong>central government<\/strong> who is <strong>qualified to be a District Judge.<\/strong><\/li>\n<li><strong>Members<\/strong>: <strong>Administrative and technical members<\/strong> appointed by the central government<\/li>\n<\/ul>\n<\/li>\n<li>Under section 22(2) of the Recovery of Debts Due To Banks And Financial Institutions Act, 1993, DRT has the <strong>following powers:<\/strong>\n<ul>\n<li><strong>summoning<\/strong> and enforcing the attendance of any person and examining him on oath;<\/li>\n<li><strong>requiring the<\/strong> discovery and <strong>production of documents<\/strong>;<\/li>\n<li>receiving evidence on affidavits;<\/li>\n<li><strong>issuing commissions<\/strong> for the examination of witnesses or documents;<\/li>\n<li><strong>reviewing its decisions;<\/strong><\/li>\n<li>dismissing an application for default or deciding it ex parte;<\/li>\n<li>setting aside any order of dismissal of any application for default or any order passed by it ex parte;<\/li>\n<li>any other matter which may be prescribed.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Jurisdiction<\/strong>: <strong>Each DRT<\/strong> is established <strong>for a specified territorial jurisdiction,<\/strong> and its jurisdiction extends to cases involving the recovery of debts due to banks and financial institutions within that jurisdiction.<\/li>\n<li><strong>Appeals and Enforcement:<\/strong> Parties aggrieved by DRT orders have the right to appeal against the decision <strong>before the Debts Recovery Appellate Tribunal (DRAT).<\/strong><\/li>\n<li>At present, 39 DRTs and 5 DRATs are functioning across the country. Each DRT and DRAT are headed by a Presiding Officer and a Chairperson, respectively.<\/li>\n<\/ul>\n<hr \/>\n<h3><strong>Q1<\/strong>: What are Tribunals in India?<\/h3>\n<p>Tribunals are judicial or quasi-judicial institutions established by law. They intend to provide a platform for faster adjudication as compared to traditional courts, as well as expertise on certain subject matters. It performs a number of functions, like adjudicating disputes, determining rights between contesting parties, making an administrative decision, reviewing an existing administrative decision, and so forth.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/epaper.thehindu.com\/ccidist-ws\/th\/th_delhi\/issues\/100428\/OPS\/G8ADC332C.1+GSBDC4V47.1.html\" target=\"_blank\" rel=\"nofollow noopener\"><u>FinMin calls for efficient oversight of DRT backlog<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Debt Recovery Tribunals are specialized judicial bodies established under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (DRT Act)<\/p>\n","protected":false},"author":5,"featured_media":20651,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-20650","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/20650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=20650"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/20650\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/20651"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=20650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=20650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=20650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}