|
The central government is empowered to establish one or more tribunal to be known as Debt Recovery Tribunal.
Composition of Tribunal
The tribunal consists of one person called as Presiding Officer and the appointment is done by the central govt. by issuing notification.
Debt Recovery Tribunal |
Appellate Tribunal |
Presiding Officer : District Judge |
Chairperson : High Court Judge, Presiding
officer of a DRT for at least 3 years. |
Presiding officer holds officer for a term of
5 years or until he attains the age of 62 years whichever is earlier. |
Chairperson holds officer for a term of 5
years or until he attains age of 65 whichever is earlier. |
Recovery Officer |
|
The staff so appointed shall work under the
general superintendence of the presiding
officer. |
|
Appeal to the Appellate Tribunal
1. Any person aggrieved by the order passed by DRT, may appeal to an Appellate Tribunal.
2. The appeal is required to be filed within 45 days from the date on which copy of the order is received. At the time of filing appeal Section 21 of the DRT Act 50% of the amount shown as due in the order required to be deposited by the appellant.
3. Appellate Tribunal should disposed off the appeal within 6 months.
LOK ADALATS
The Lok Adalts are created under Legal Services Authority Act 1987.
Awards of Lok Adalt: Their awards are in the form of consent decrees. NO appeal lies against such Awards which is binding on all parties.
Procedure and powers: Civil Procedure Code is applicable which means the Lok Adalt can send summons, take evidence on oath, initiate exparte proceedings, and determine court procedures. Where compromise is not reached: The case shall be returned back to the court from which the reference was received for continuing with the case, there.
RBI during April 2001 advised banks and financial institutions to follow the following guidelines for implementation: Amount - Cases involving an amount up to Rs.20 lakh may be referred to Lok Adalats.
Borrowers : All NPA accounts (other than time barred), both suit filed and non-suit filed, which are in "doubtful" and "loss" category.
DRT LOKADALATS
Banks can take up matters where outstanding exceed the ceiling of Rs.20 lac, with Lok Adalats organised by the Debt Recovery Tribunals / Debt Recovery Appellate Tribunals.
Supreme Court has suggested that personal loan cases up to Rs.10 lac should preferably settled through Lok Adalats.
……………………………………………………………………………………………………………………………………………
|
