SC Issues Notices To Ministry of Finance Over Critical Vacancies In Debt Recovery Tribunals

A bench comprising Chief Justice Sanjiv Khanna and Justice Sanjay Kumar heard the submissions of Senior Advocate KB Sounder Rajan along with Lawyer Sudarshan Rajan, appearing for PIL petitioner Nischay Chaudhary, and sought the response of the Union Ministry of Finance.

The PIL raised concerns that nearly one-third of the 39 DRTs in the country are currently non-functional due to absence of Presiding Officers, undermining their core objective of expediting debt recovery for banks and financial institutions.

The DRTs are set up under the Recovery of Dues to Banks and Financial Institutions Act of 1993 to enable banks and financial institutions recover bad debts from borrowers.

According to the PIL, as of September 30, 2024, 11 DRTs are without Presiding Officers, severely impacting their ability to resolve cases efficiently.

The petitioner argues that this inaction frustrates the purpose of the 1993 law, which was enacted to ensure timely adjudication and recovery of debts.

The PIL also emphasises that speedy justice is a fundamental right under Articles 14 and 21 of the Constitution, as recognised by the Supreme Court in the case of District Bar Association Dehradun vs. Ishwar Shandilya in 2020.

The PIL sought a direction to the Ministry of Finance to produce records relating to the selection and appointment of Presiding Officers in DRTs to evaluate the government's seriousness in addressing these vacancies.

It also sought a direction to the Centre to mandate the timely filling up of existing vacancies and establish mechanisms to prevent delays in future appointments.

As interim measures, it sought a direction that the powers of non-functional DRTs are vested in other tribunals to prevent disruption of services.

“Issue any further orders to safeguard the efficient functioning of DRTs in the interest of justice,” the PIL said.