Context:
Supreme Court issued notice to Ministry of Finance highlighting critical vacancies in Debt Recovery Tribunals (DRTs) across India.
Debt Recovery Tribunals (DRTs):
- Statutory judicial bodies established under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (DRT Act).
As of October 2024, there are 39 Debt Recovery Tribunals (DRTs) and 5 Debt Recovery Appellate Tribunals (DRATs) in India.
- Purpose – To expedite the recovery of debts due to banks and financial institutions.
- Jurisdiction – DRTs handle cases involving the recovery of debts above ₹20 lakh.
- Functions –
- Adjudication – DRTs adjudicate applications from banks and financial institutions for the recovery of debts.
- Enforcement – They ensure the enforcement of their orders and decrees.
- Powers –
- Summon and enforce the attendance of any person
- Require the discovery and production of documents
- Receive evidence on affidavits
- Issue commissions for the examination of witnesses or documents.
- Structure –
- Presiding Officer – Each DRT is headed by a Presiding Officer, who is qualified to be a District Judge.
- Appellate Tribunal – Appeals against DRT orders can be made to the Debts Recovery Appellate Tribunal (DRAT).
- Procedure –
- Filing of Applications – Banks and financial institutions file applications for debt recovery.
- Hearing and Adjudication – DRTs conduct hearings and pass orders for the recovery of debts.
- Appeals – Aggrieved parties can appeal to the DRAT within 45 days of the DRT order.
- Recent amendments have introduced time limits for various steps in the adjudication process and increased the retirement age of presiding officers from 62 to 65 years.
Source: The Hindu
Previous Year Question
Consider the following statements:
1. Most of India’s external debt is owed by governmental entities.
2. All of India’s external debt is denominated in US dollars.
Which of the statements given above is/are correct?
[UPSC Civil Service Exam – 2019 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (d)
