Powers and functions of Debt Recovery Tribunal and Debt Recovery Appellate

A company in Navi Mumbai borrows a few crores from a bank against its factory, stops paying, and the bank wants its money back. The bank could file a civil suit and wait years for a decree and then years more for execution. Parliament thought that was too slow for public money, so it built special tribunals just for bank debts. This topic explains what the Debts Recovery Tribunal and the Debts Recovery Appellate Tribunal are, what they can order, and how a bank's claim travels from application to recovery.

In two minutes

The Recovery of Debts and Bankruptcy Act 1993 creates Debts Recovery Tribunals to decide banks' and financial institutions' recovery claims and Debts Recovery Appellate Tribunals to hear appeals, with civil courts barred from the same matters.

The rest of this chapter

The full explanation, the cheat sheet, every previous-year question at every mark weight, the quiz and the answer skeletons are part of Law of Banking and Negotiable Instruments on LexBlox Semester. Sign in to unlock the subject, or read Module 1 of Legal Language and Writing free.