Download - 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
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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!
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Interim rders
Attachment of the propert"
Interim In#unction
Appointment of $ecei%er for &ana'ement of the propert"
Appointment of commissioner for preparation of anin%entor" of the assets and for the sale thereof
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Adducin' %idence:
Bank to adduce evidence by "ay of proof affidavit alon "ith
oriinal documents
Defendant to file counter proof affidavit to substantiate their
case stated in the "ritten statement or counter claim as the
case may be
f either of the parties in the DRT proceedins desires to cross
examine the person "ho has filed affidavit4 he has to file
application for cross examinin the said "itness
After receipt of the application4 9residin 7fficer of the DRT
shall allo" or disallo" the said application on merits
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After completion of evidence4 the DRT shall hear both
parties and pass final orders
9residin 7fficer of DRT shall issue Recovery /ertificate
in terms of the final 7rders
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Appeal
Appeal aainst order of DRT shall prefer before Debt Recovery
Appellate Tribunal (DRAT)
Appeal shall be file "ithin ,: days from the date of receipt of order
Fees for Appeal is prescribed in the DRT0DRAT 9rocedure Rules
The Appellate Tribunal may condone the delay for filin the Appeal
Debtor has to file appeal aainst the Bank by depositin ;:< of the amount
of debt determined by DRT
Appeal shall be disposed by the Appellate Tribunal "ithin #ix months
.o Appeal shall be preferred aainst the 7rder made "ith the consent of
the parties
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$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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