News:Recently,the Union Cabinet has given its nod for amendment of the Direct Tax Vivad se Vishwas Bill, 2020 so that its scope can be widened to cover litigation pending in various debt recovery tribunals(DRTs).
About Debt Recovery Tribunals(DRT):
- Debt Recovery Tribunals have been established following the passing of the Recovery of Debts due to Banks and Financial Institutions Act (RDDBFI),1993.
- The primary goal and function of DRT is the recovery of loaned money from borrowers which is owed to banks and financial institutions from customers.
- This Tribunal is also the second court of appeal in respect of cases filed under The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest(SARFAESI) Act,2002.
- The petitions against orders passed through DRTs comes before the Debts Recovery Appellate Tribunal(DRAT).
- A DRT is presided over by a presiding officer who is appointed by the central govt. and who shall be qualified to be a District Judge; with tenure of 5 years or the age of 62 whichever is earlier.
- An application for recovery of debt can be made to the DRTs for all debts valued at more than 20 lakhs.For lesser amounts,the banks and financial institutions can approach Civil Courts.
- No court in the country other than the Supreme Court(SC) and the High Court(HC) and that too only under articles 226 and 227 of the Constitution have jurisdiction against a judgment of DRAT.