Recovery of Debts Due to Banks and Financial

7/26/2019 Recovery of Debts Due to Banks and Financial

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RECOVERY OF DEBTS DUE TO BANKSAND FINANCIAL INSTITUTIONS ACT,

1993, (RDBF Act)

The RDBF Act has been enacted for establishment of

Debt Recovery Tribunals (DRTs) for expeditious

adjudication and recovery of debts due to Banks andFinancial nstitutions!

t extends to the "hole of ndia except the #tate of

$ammu % &ashmir!

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RDBF Act

De*t+ Rec#e$%T$i*!al

DRT (33 !+) -

!e. a$e /$/+e t*e c!+titte i!Ba!gal$e,C0a!iga$0,De0$a!, Silig$i,E$!ala2 a!

'%e$a*a

De*t Rec#e$% A//ellateT$i*!al

DRAT ( !+4) Alla0a*a,

Del0i Klata 5 62*ai


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C!+titti! 7 DRT+

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Jurisdiction:

'xclusive $urisdiction to adjudicate debts due to Banks and

Financial nstitutions involvin `*!** lacs % above +#ection (,)-!

.o /ivil /ourt shall have jurisdiction to decide0 adjudicate

claims0debts that is exclusively vested "ith DRT 0DRAT under this Act

(#ection 1)!


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Application to the Tribunal: (Section 19)

The application shall be dealt "ith as expeditiously as possible and

endeavor shall be made by the DRT to dispose of "ithin 180daysfrom the date of filin! +#ection 2(3,)-

Any of the

defendants4 "here

there are more than

one4 actually and

voluntarily residesor carries on

business or

personally "orks for

ain

The cause of

action4 "holly or in

part4 arises!

The defendant4 or

each of the

defendants4 at the

time of makin the

application4 actuallyand voluntarily

resides or carries on

business or

personally "orks for

ain


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Clai2 8etiti!

Where a bank or financial institution has to recover any debt, anapplication under Section 19 (1) of the Act is to be filed before the

DR

A clai! petition is like a plaint filed before the "ivil "ourt# $t shall

contain the follo%in& particulars'

Description of the bank and the defendant urisdiction of the ribunal

i!itation

*acts of the case

"ause of action, clai! a!ount and prayers

$nteri! relief if any

+ #

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/ourt fees5

-ini!u! `1.,///0 plus `1,///0 for every `1 lakh of debt or

part thereof in e2cess of `1/ lacs, subect to a !a2i!u! of

`1#4/ lacs#

Issuance of Summons:DR issues su!!ons re5uirin& the defendant to sho% cause

%ithin 3/ days fro! the service of su!!ons#

After receipt of su!!ons, defendant shall file %ritten state!ent

%ithin the ti!e stipulated by the ribunal



Written statement :: Set ff::!ounter !laim

6ritten statement "ith #et 7ff0 /ounter claim shall have thesame effect as a plaint in a cross8suit so as to enable the

Tribunal to pass a final order in respect of both the oriinal

claim and the set8off!

Bank can file "ritten statement in ans"er to the counter8claim

of the defendant "ithin such period as may be fixed by the

Tribunal!



Interim rders

Attachment of the propert"

Interim In#unction

Appointment of $ecei%er for &ana'ement of the propert"

Appointment of commissioner for preparation of anin%entor" of the assets and for the sale thereof



Adducin' %idence:

Bank to adduce evidence by "ay of proof affidavit alon "ith

oriinal documents

Defendant to file counter proof affidavit to substantiate their

case stated in the "ritten statement or counter claim as the

case may be

f either of the parties in the DRT proceedins desires to cross

examine the person "ho has filed affidavit4 he has to file

application for cross examinin the said "itness

After receipt of the application4 9residin 7fficer of the DRT

shall allo" or disallo" the said application on merits


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After completion of evidence4 the DRT shall hear both

parties and pass final orders

9residin 7fficer of DRT shall issue Recovery /ertificate

in terms of the final 7rders

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Appeal

Appeal aainst order of DRT shall prefer before Debt Recovery

Appellate Tribunal (DRAT)

Appeal shall be file "ithin ,: days from the date of receipt of order

Fees for Appeal is prescribed in the DRT0DRAT 9rocedure Rules

The Appellate Tribunal may condone the delay for filin the Appeal

Debtor has to file appeal aainst the Bank by depositin ;:< of the amount

of debt determined by DRT

Appeal shall be disposed by the Appellate Tribunal "ithin #ix months

.o Appeal shall be preferred aainst the 7rder made "ith the consent of

the parties



$eco%er" roceedin's

Receipt of R/ by Recovery 7fficer

ssuin of demand notice by Recovery 7fficer to the /ertificate Debtor

7n failure of /ertificate Debtor to pay the amount as per R/4 The Recovery

7fficer shall proceed to recover the amount of debt specified in the /ertificat

by one or more of the follo"in mode!

(a)attachment and sale of the movable or immovable property of the

defendant=

(b) arrest of the defendant and his detention in prison=

(c) appointin a receiver for the manaement of the movable or immovable

properties of the defendant!


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An appeal lies aainst the order of the

recovery officer under #ec ?* of the Act!

#uch an appeal is to be made "ithin a

period of ?* days to the tribunal! The

tribunal after hearin both the parties

may either confirm4 modify or set aside

the order of the recovery officer

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Debt Recovery ribunal (refund of "ourtfee ) Rules ./13

he 78 of DR !ay per!it refund of court

fee 4/: of the fee in cases settled prior to the

co!!ence!ent of hearin&

.4 : of fee in cases %hich are settled atany sta&e before the passin& of final order

by the 78#

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Documents

Recovery of Debts Due to Banks and Financial