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Act51
Enacted 1993

The Recovery Of Debts And Bankruptcy Act, 1993

In force 45 sections Finance

An Act to provide for the establishment of Tribunals for expeditious adjudication and recovery of debts due to banks and financial institutions and for matters connected therewith or incidental thereto.

Act 51 of 1993 Enacted 27 Aug 1993 In force 24 Jun 1993 Department Department of Financial Services

Administered by. Ministry of Finance, Department of Financial Services · Other Acts of 1993

Preamble

THE RECOVERY OF DEBTS AND BANKRUPTCY ACT, 1993

ACT NO. 51 OF 1993

[27th August, 1993.] An Act to provide for the establishment of Tribunals for expeditious adjudication and recovery of debts due to banks and financial institutions 1[, insolvency resolution and bankruptcy of individuals and partnership firms] and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:--

What this Act covers

Summary of the Recovery of Debts Due to (Banks and Financial Institutions) Act, 1993

1. Objective

The Act was enacted to provide for the speedy adjudication and recovery of debts due to banks and financial institutions by establishing Debts Recovery Tribunals (DRTs) and Debts Recovery Appellate Tribunals (DRATs). Before this Act, banks had to approach ordinary civil courts, resulting in prolonged delays in debt recovery.

2. Scope and Application

• Applies throughout India.

• Covers debts owed to banks and financial institutions above the minimum monetary threshold prescribed by the Central Government.

• Initially called the Recovery of Debts Due to Banks and Financial Institutions Act, 1993; renamed as the Recovery of Debts and Bankruptcy Act, 1993 by the Insolvency and Bankruptcy Code, 2016.

3. Establishment of Tribunals

(a) Debts Recovery Tribunal (DRT)

• Established by the Central Government.

• Headed by a Presiding Officer.

• Has exclusive jurisdiction over applications by banks and financial institutions for recovery of debts.

(b) Debts Recovery Appellate Tribunal (DRAT)

• Hears appeals against orders of DRTs.

• Headed by a Chairperson.

4. Jurisdiction of DRT

The DRT has the power to:

• Entertain applications from banks and financial institutions for recovery of debts.

• Determine the amount due.

• Issue recovery certificates.

• Exercise powers similar to those of a civil court in relation to summoning witnesses, receiving evidence, and enforcing attendance.

5. Recovery Officer

After the DRT determines the amount payable, a Recovery Officer executes the recovery certificate and may recover the amount by:

• Attachment and sale of movable or immovable property.

• Arrest and detention of the debtor (where permitted by law).

• Appointment of a receiver.

• Other modes prescribed under the Act.

6. Appeals

• Any person aggrieved by an order of the DRT may appeal to the DRAT.

• Appeals must generally be filed within the prescribed limitation period.

• The Act also contains provisions regarding pre-deposit requirements, subject to statutory conditions and discretion available under the Act.

7. Powers of the Tribunal

The DRT has powers to:

• Summon and examine witnesses.

• Receive evidence on affidavit.

• Compel production of documents.

• Review its own orders in specified circumstances.

• Grant interim orders, injunctions, and appoint receivers where necessary.

Sections

Type to filter. 45 sections.

  1. 1Short title, extent, commencement and application
  2. 2Definitions
  3. 3Establishment of Tribunal
  4. 4Composition of Tribunal
  5. 5Qualifications for appointment as Presiding Officer
  6. 6Term of office of Presiding Officer
  7. 6AQualifications, terms and conditions of service of Presiding Officer
  8. 7Staff of Tribunal
  9. 8Establishment of Appellate Tribunal
  10. 9Composition of Appellate Tribunal
  11. 10Qualifications for appointment as Chairperson of the Appellate Tribunal
  12. 11Term of office of Chairperson of Appellate Tribunal
  13. 12Staff of the Appellate Tribunal
  14. 13Salary and allowances and other terms and conditions of service of Presiding Officers
  15. 14Filling up of vacancies
  16. 15Resignation and removal
  17. 15AQualifications, terms and conditions of service of Chairperson
  18. 16Orders constituting Tribunal or an Appellate Tribunal to be final and not to invalidate its proceedings
  19. 17Jurisdiction, powers and authority of Tribunals
  20. 17APower of Chairperson of Appellate Tribunal
  21. 18Bar of jurisdiction
  22. 19Application to the Tribunal
  23. 19AFiling of recovery applications, documents and written statements in electronic form
  24. 20Appeal to the Appellate Tribunal
  25. 21Deposit of amount of debt due, on filing appeal
  26. 22Procedure and powers of the Tribunal and the Appellate Tribunal
  27. 22AUniform procedure for conduct of proceedings
  28. 23Right to legal representation and Presenting Officers
  29. 24Limitation
  30. 25Modes of recovery of debts
  31. 26Validity of certificate and amendment thereof
  32. 27Stay of proceedings under certificate and amendment or withdrawal thereof
  33. 28Other modes of recovery
  34. 29Application of certain provisions of Income-tax Act
  35. 30Appeal against the order of Recovery Officer
  36. 30ADeposit of amount of debt due for filing appeal against orders of the Recovery Officer
  37. 31Transfer of pending cases
  38. 31APower of Tribunal to issue certificate of recovery in case of decree or order
  39. 31BPriority to secured creditors
  40. 32Chairperson, Presiding Officer and staff of Appellate Tribunal and Tribunal to be public servants
  41. 33Protection of action taken in good faith
  42. 34Act to have overriding effect
  43. 35Power to remove difficulties
  44. 36Power to make rules
  45. 37Repeal and saving

Rules made under this Act

25 sets of Rules. India Code publishes Rules as a record and a document rather than as text, so these are indexed here and not reproduced. All Rules.

  • Notification No. S.O 4312(E) dtd 6.9.18 - Increase in Pecuniary Jurisdiction of DRTs from Rs. 10 Lakhs to Rs. 20 Lakhs under the RDDBFI Act, 19932018
  • Notification No.535(E), 536(E), 537(E), 538(E) & 539(E) dated 8.6.2018 - Unified Cadre for the staff of all the DRTs across the country2018
  • various amendments in DRAT and DRT procedural rules2016
  • Debts Recovery Tribunals (Procedure for Investigation of Misbehavior or Incapacity of PO) Rules, 20122012
  • Debts Recovery Appellate Tribunal (Procedure for appointment as Chairperson of the Appellate Tribunal Amendment Rules), 20112011
  • Debts Recovery Tribunals (Procedure for Appointment as PO of the Tribunal Amendment Rules), 20102011
  • Debts Recovery Tribunals ( Procedure for Investigation of Misbehaviour or incapacity of Presiding Officer ) Rules, 20102010
  • Debts Recovery Tribunals (Salaries allowances and other terms and conditions of service of Presiding Officer Amendment Rules), 20082008
  • Debts Recovery Appellate Tribunal (Procedure for the appointment of Chairperson of the Appellate Tribunal)amendment Rules ,20052005
  • Debts Recovery Appellate Tribunal Recruitment Rules for Group A & B Posts2001
  • Debts Recovery Tribunals Recruitment Rules for Group A & B Posts2001
  • Debts Recovery Appellate Tribunals (Procedure for appointment as Chairperson of the Appellate Tribunal Amendment Rules), 20002000
  • Debts Recovery Tribunals (Procedure for appointment as PO of the Tribunal Amendment Rules), 20002000
  • Debts Recovery Tribunals Recruitment Rules for Group C & D Posts1999
  • Debts Recovery Appellate Tribunal Recruitment Rules for Group C & D Posts1998
  • Debts Recovery Appellate Tribunals (Procedure for appointment as Chairperson of the Appellate Tribunal Rules), 19981998
  • Debts Recovery Tribunal (Procedure for the appointment of Presiding Officer of the Tribunal) Rules,19981998
  • Debts Recovery Tribunal (Financial and Administrative Power) Rules, 19971997
  • Debts Recovery Tribunal (Procedure) Amendment Rules, 19971997
  • Debts Recovery Appellate Tribunals (Salaries, Allowances and other terms and conditions of service of the Chairperson) Rules, 19931994
  • Debts Recovery Appellate Tribunals( Salaries, allowances and other conditions of Service of the officers and employees Rules), 19931994
  • Debts Recovery Tribunals (Procedure) Amendment Rules, 19941994
  • Debts Recovery Tribunals (Salaries, Allowances and other conditions of service of the Recovery Officer and other officer and employees) Rules, 19931994
  • Debts Recovery Tribunals (Salaries, Allowances and other terms and conditions of service of the Presiding Officer) Rules 19931994
  • Debts Recovery Tribunal (Procedure) Rules, 19931993

Related Acts

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Every one of the 45 sections of this Act has its own page. This page is not a substitute for legal advice.