Debt Recovery of Tribunal

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Overview:

Recently, the department of Financial Services secretary chaired a conference of heads of Debt Recovery Appellate Tribunals (DRATs) and Presiding Officers of Debt Recovery of Tribunals (DRTs) in New Delhi.

About Debt Recovery of Tribunal

  • The Debts Recovery Tribunals (DRTs) and Debts Recovery Appellate Tribunals (DRATs) were established under the Recovery of Debts and Bankruptcy Act (RDB Act), 1993.
  • Objective: These are established to provide expeditious adjudication and recovery of debts due to Banks and Financial Institutions.
  • At present, 39 Debts Recovery Tribunals (DRTs) and 5 Debts Recovery Appellate Tribunals (DRATs) are functioning across the country.
  • Each DRT and DRAT are headed by a Presiding Officer and a Chairperson respectively.
  • Under the section 22(2) in the Recovery Of Debts Due To Banks And Financial Institutions Act, 1993 DRT has the following powers
    • summoning and enforcing the attendance of any person and examining him on oath;
    • requiring the discovery and production of documents;
    • receiving evidence on affidavits;
    • issuing commissions for the examination of witnesses or documents;
    • reviewing its decisions;
    • dismissing an application for default or deciding it ex parte;
    • setting aside any order of dismissal of any application for default or any order passed by it ex parte;
    • any other matter which may be prescribed.
  • Composition
    • It is headed by the Presiding Officer to be appointed, by notification, by the Central Government.
    • Qualification of Presiding officer: A person shall not be qualified for appointment as the Presiding Officer of a Tribunal unless he is, or has been, or is qualified to be, a District Judge.
    • Tenure: The Presiding Officer of a Tribunal shall hold office for a term of five years from the date on which he enters upon his office and shall be eligible for reappointment.

Q1) What is Cash Reserve Ratio (CRR)?

It is the share of a bank’s total deposit that is mandated by the Reserve Bank of India (RBI) to be maintained with the latter as reserves in the form of liquid cash.

Source: DFS Secretary chairs conference of heads of Debt Recovery Appellate Tribunals (DRATs) and Presiding Officers of Debt Recovery Tribunals (DRTs) in New Delhi