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Supreme Court Seeks Finance Ministry’s Response on Critical Vacancies in Debts Recovery Tribunals

The Supreme Court has issued a notice to the Ministry of Finance in response to a Public Interest Litigation (PIL) highlighting severe vacancies in 11 Debts Recovery Tribunals (DRTs) across India. Established under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, these tribunals are crucial for facilitating debt recovery by financial institutions. However, as of September 30, 2024, nearly one-third of the country’s 39 DRTs remain non-functional due to the absence of presiding officers, significantly affecting their efficiency and purpose.


A bench comprising Chief Justice Sanjiv Khanna and Justice Sanjay Kumar directed the Ministry to file a counter affidavit within five weeks, with three weeks granted to the petitioner for a rejoinder. The PIL, filed by Ghaziabad resident Nischay Chaudhary and argued by senior advocate K.B. Sounder Rajan, highlighted the non-functional status of DRTs in cities like Allahabad, Jaipur, Chennai, Mumbai, and Lucknow. It argued that administrative inaction undermines the 1993 Act's objective of timely debt recovery and infringes upon the fundamental right to speedy justice under Articles 14 and 21 of the Constitution.


Citing the Supreme Court’s 2020 decision in District Bar Association Dehradun v. Ishwar Shandilya, the PIL urged the Ministry to disclose records on presiding officer appointments, expedite the filling of vacancies, and implement mechanisms to prevent future delays. Interim relief was also sought to delegate the powers of non-functional DRTs to operational ones, as temporary measures like assigning additional charges to presiding officers have proven inadequate. For instance, the presiding officer of DRT Patna has been tasked with overseeing both Ranchi and Lucknow tribunals simultaneously.


This case underscores the urgent need for systemic reforms to address administrative inefficiencies in DRTs. The Supreme Court’s intervention highlights the importance of restoring functionality to these tribunals, which play a pivotal role in maintaining financial discipline and enabling efficient debt recovery.

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