Wednesday, January 20, 2016

Debt Recovery Tribunals

Debt Recovery Tribunals were setup to expedite recovery proceedings and speedy adjudication of matters concerning debt recovery of banks.
1. Earlier debt recovery cases had to be filed in ordinary civil courts which took years (often 10-15) to be adjudicated.
DRTs have helped reduce the litigation time.
2 Recovery of dues due to banks wasn't given importance by civil courts. DRTs function solely for the said purpose.
3. DRTs are quasi-judicial institutions, with well-laid out duties and powers.
4.Easier filing of applications and less fees. The maximum amount the tribunal can extract as fees is `1,50,000 and the
minimum amount is `12000. After `10 lakh, each lakh will add `1000 in the fees. This is far less than what civil courts charge.
1. DRTs are burdened with huge backlog of cases due to shortage of staff.
2. Cases in DRTs are dragging on for years instead of the mandated 6 months time period.
3.Frequent approval of stay petitions and the abuse of other loopholes mars the effectiveness of DRTs.
4. Shortage of Appellate Tribunals hinders the appeal process.
Setting up of more DRTs and Appellate tribunals , appointing more officials and plugging the loopholes in law will help in strengthening the DRTs and make them more viable.

1 comment:

Unknown said...

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