Unnecessary adjournments must not be granted by the DRT

Debt Recovery Tribunal(s) are constituted to ensure expeditious disposal of controversies/ issues between the banks and borrowers in the larger public interest.

Debt Recovery Tribunal(s) are constituted to ensure expeditious disposal of controversies/ issues between the banks and borrowers in the larger public interest. Debt Recovery Tribunal(s) (Tribunal) were constituted to ensure expeditious disposal of controversies/ issues between the banks and borrowers. However, the performance score card tells the other story. The issue was prominently dealt with by the Supreme Court in its recent decision. Tribunals were established under the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (RDB Act) to judge disputes arising under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The purpose or objective behind constitution of tribunal was to ensure that disputes between banks and borrowers and any third party having acquired any interest gets disposed of in quick succession of time keeping in view the larger public interest and to meet this objective, the thrust should be on giving priority to adjudicate real controversy. Accordingly, subjective procedural laws were kept at bay and the proceedings before tribunals are guided by fair play and principles of natural justice and the regulations formed by it. However, as noted in the present case, the appellate body i.e. DRAT took more than four years to decide one application and while doing so, granted such relief which was legally not permissible. The Supreme Court on the above while disposing the present matter had to mention that Tribunal cannot assume the role of a Court different for the purposes for which it is established. Where it does not have the jurisdiction on any issue, it should say so. Further, the tribunal dealing with an appeal should not allow adjournments for the asking. Grant of adjournment should be an exception and not routine and mechanical process. Chairman and the members of the DRAT are expected to ensure that objectives of special legislations, namely, the SARFAESI Act and the RDB Act are fulfilled and not defeated. Standard Chartered Bank vs. Dharminder Bhohi and Others (SC, 13.09.2013)