Sagnik (Management Trainee) 02 April 2013
Adv k . mahesh (advocate) 03 April 2013
the procedure followed by the Debt recovery tribunal is explained in Acts
Chapter IV of the Act prescribes the procedure to be followed by the Tribunals. The salient features of the prescribed procedure are as follows:
a) An application may be moved to the Tribunal by any Bank or Financial Institution for recovery of debts. (Sec. 19(1))
b) Any other person including any borrower cannot move the Tribunal for redressal of any grievance.
c) The trial conducted by the Tribunal shall be of an expeditious nature and the tribunal shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908) but shall be guided by the principles of natural justice. (Sec. 19 & 22)
d) The Tribunal shall dispose of the application as expeditiously as possible and endeavour shall be made to dispose of the application finally within six months of the receipt of the application. (Sec. 19(8))
e) The Presiding Officer of the Tribunal shall issue a certificate under his signature for recovery of the amount of debt, to the Recovery Officer. (Sec. 19(7))
f) The Tribunal and the Appellate Tribunal have been given a range of powers under the Code of Civil Procedure, 1908; Indian Penal Code and the Code of Criminal Procedure, 1973 without subjecting the Tribunal and the Appellate Tribunal to any procedures or duties prescribed under the said civil and criminal laws. (Sec. 22)
g) A borrower shall be able to prefer an appeal against the order of the Tribunal if and only if the borrower has deposited seventy five per cent of the debt due as determined by the Tribunal, within forty days of the receipt of the order of the Tribunal. (Sec. 20 & 21)
section 25 of the Act provides for Modes of recovery of debts by Recovery Officer. It is provided that “The Recovery Officer shall, ....., proceed to recover the amount of debt specified in the certificate by one or more of the following modes, namely:-
(a) attachment and sale of the movable or immovable property of the defendant;
(b) arrest of the defendant and his detention in prison;
(c) appointing a receiver for the management of the movable or immovable properties of the defendant.”