Debts Recovery Tribunal Procedure Rules

Dated 3rd November, 2016 | Copy of | Notification |

          In exercise of powers conferred by sub-sections (1) and (2) of section 36 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (51 of 1993), the Central Government hereby makes following rules further to amend the Debts Recovery Tribunal (Procedure) Rules, 1993, namely:-

1. Short title and commencement.– (1) These rules may be called the Debts Recovery Tribunal (Procedure) (Amendment) Rules, 2016.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Debts Recovery Tribunal (Procedure) Rules, 1993, (hereinafter referred to as the principal rules), in rule 2,-

(i) for clause (a), the following shall be substituted, namely:-

A. ‘(a) “Act” means the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (51 of 1993);’;

B. ‘(aa) “agent means a person duly authorised by a party to present application or to give reply on its behalf before the Tribunal;”;

(ii) for clause (f), the following clause shall be substituted, namely:–

‘(f) “Presiding Officer” means the Presiding Officer of the Tribunal and includes the Presiding Officer of any other Tribunal, authorised by the Central Government to discharge the function;’;

3. In the principal rules, in rule 5, after sub-rule (2), the following sub-rule shall be inserted, namely:–

“(2A) After registration of the application under sub-rule (2), the Tribunal shall issue summons to the defendants in Form IV.”.

4. In the principal rules, in rule 5A, in sub-rule (2) for the words “sixty days”, the words “thirty days” shall be substituted.

5. In the principal rules, in rule 6, for clause (a), the following shall be substituted, namely:–

“(a) the branch or any other office of the applicant is functioning as a bank or financial institution and  maintaining an account in which debt claimed is outstanding for the time being:

Provided that a Debenture Trustee having a claim against any company for redemption of secured debt securities, shall file an application at the place within whose jurisdiction the Debenture Trustee has its principal place of business or at the place where secured asset is located.”.

6. In the principal rules, for rule 12, the following rule shall be substituted, namely:-

“12. Filing of written statement and other documents by the defendant and by the applicant as a reply to the written statement.– (1) The defendant may, within a period of thirty days from the date of service of summons, file two complete sets of written statement including claim for set-off or counter claim, if any, along with documents in a paper book form.

(2) A copy of the written statement filed under sub-rule (1) shall be served to the applicant.

(3) If the defendant fails to file the written statement of his defence, including claim for set off or counter claim under sub-rule (1), if any, within the period of thirty days, the Presiding Officer may in exceptional cases and special circumstances to be recorded in writing, extend the period, by such further period not exceeding fifteen days.

(4) If the defendant have filed their claim for set off or counter claim, the applicant shall file reply statement in answer to the claim for set off or counter claim within a period of thirty days of filing of such claims.

(5) If the applicant fails to file his reply within the period of thirty days, the Presiding Officer may, in exceptional cases and special circumstances, to be recorded in writing, extend the period, by such further period not exceeding fifteen days.

(6) The written statement of the defendant including claim for set off or counter claim or any other pleading whatsoever by the defendant or the applicant, as the case may be, shall be supported by an affidavit sworn in by the defendant or the applicant or the witnesses, verifying all the facts and pleadings and other documents annexed and the affidavits of witnesses, to be led by defendant or the applicant shall be filed simultaneously with the written statement of the defendant or the reply of the applicant.

(7) If the defendant or the applicant as the case may be, fails to file the reply as specified above, the Tribunal may proceed forthwith to pass an order on the application as it thinks fit.

(8) Where a defendant makes an admission of the full or part of the amount of debt due to a bank or financial institution, the Tribunal shall order such defendant, to pay such amount, to the extent of the admission, by the applicant within a period of thirty days from the date of such order, failing which the Tribunal may issue a certificate in accordance with section 19 of the Act, to the extent of amount of debt due admitted by the defendant.

(9) The Tribunal may at any time for sufficient reason order that any particular fact or facts shall be proved by affidavit, or that the affidavit of any witness shall be read at the hearing, on such conditions as the Tribunal thinks reasonable:

Provided that after filing of the affidavits by the respective parties where it appears to the Tribunal that either the applicant or the defendant desires the production of a witness for cross examination and that such witness can be produced and it is necessary to do so, the Tribunal shall for sufficient reasons to be recorded, order the witness to be present for cross examination, and in the event of the witness not appearing for cross examination, then, the affidavit shall not be taken into evidence and further that no oral evidence other than that given in this proviso will be permitted.

(10) If the defendant denies his liability to pay the claim made by the applicant, the Tribunal may act upon the affidavit of the applicant who is acquainted with the facts of the case or who has on verification of the record sworn the affidavit in respect of the contents of application and the documents as evidence.

(11) The provisions contained in section 4 of the Banker's Books Evidence Act, 1891 (18 of 1891) shall apply to a certified copy of an entry in a banker's book furnished along with the application filed under sub-section (1) of section 19 by the applicant.”.

7. In the principal rules, for rule 16, the following rule shall be substituted, namely:–

“16. Communication of final orders to parties.– Every final order passed and recovery certificate issued shall be communicated to the applicant and to the defendant either in person or by registered post free of cost and may also be uploaded in the website of the Tribunal:

Provided that the applicant and defendant may obtain copy of any other order passed by the Tribunal during the hearing from the Registrar on payment of fees of rupees five per page, subject to a minimum of rupees one hundred, for every order and the same may also be uploaded in the website of the Tribunal.”.

8. In the principal rules, in FORM I,–

(a) under the heading ‘DETAILS OF APPLICATION’, after serial number 3 and entries relating thereto, the following serial number and entries shall be inserted, namely:–

“3A. Details of debt and assets:

(b) for serial number 7 and entries relating thereto, the following serial number and entries shall be substituted, namely:–

“7. Interim order, if prayed for:–

(i) pending final decisions on the application, the applicant seeks issue of the following interim order:–

(Give here the nature of the interim order prayed for with reasons)

(ii) whether the applicant is seeking an order directing the defendant to disclose to the Tribunal particulars of other properties or assets owned by the defendant and if so, grounds justifying such order.

(iii) if the applicant proposes to rely on evidence of any witness in support of his claim, he shall annex affidavits of the witnesses, to the application.”;

(c) for serial number 10 and entries relating thereto, the following serial number and entries shall be substituted, namely:–

“10. Details of documents:-

True copies of all documents and evidence of witnesses along with an index of such documents in duplicate, relied upon in support of the claim.”

9. In the principal rules, after FORM III, the following FORM shall be inserted, namely:–

“FORM IV
(See sub-rule (2A) of rule 5)

Summons under sub-section (4) of section 19 of the Act, read with sub-rule (2A) of rule 5 of the Debt Recovery Tribunal (Procedure) Rules, 1993.

Before Debts Recovery Tribunal__________
address___________________________
OA No._____

Date _______
_____________                                                                                                                         Applicant
____________________                                                                                                             Defendant(s)

Whereas, OA No.______ was listed before Hon’ble Presiding Officer on .................

Whereas, this Hon’ble Tribunal is pleased to issue summons/ notice on the said Application under section 19(4) of the Act, (OA) filed against you for recovery of debts of .______/- (application along with copies of documents etc. annexed).

In accordance with sub-section (4) of section 19 of the Act, you, the defendants are directed as under:-

(i) to show cause within thirty days of the service of summons as to why relief prayed for should not be granted;

(ii) to disclose particulars of properties or assets other than properties and assets specified by the applicant under serial number 3A of the original application;

(iii) you are restrained from dealing with or disposing of secured assets or such other assets and properties disclosed under serial number 3A of the original application, pending hearing and disposal of the application for attachment of properties;

(iv) you shall not transfer by way of sale, lease or otherwise, except in the ordinary course of his business any of the assets over which security interest is created and/ or other assets and properties specified or disclosed under serial number 3A of the original application without the prior approval of the Tribunal;

(v) you shall be liable to account for the sale proceeds realised by sale of secured assets or other assets and properties in the ordinary course of business and deposit such sale proceeds in the account maintained with the bank or financial institutions holding security interest over such assets.

You are also directed to file the written statement with a copy thereof furnished to the applicant and to appear before_________ on __________at __________A.M. failing which the application shall be heard and decided in your absence.

Given under my hand and seal of the Tribunal on this the............... day of.......................20............

By Order of the Tribunal
Registrar
Debts Recovery Tribunal, .......

To

          Defendants

1.

2.

3.

Sd/-          
(Anandrao V. Patil)
Jt. Secy.      

S.O.1047(E)
F.No.3/10/2016-DRT
Issued by:
Ministry of Finance
(Department of Financial Services)
New Delhi

Note :The principal rules were published in the Gazette of India, Part II, Section 3, Sub-section (i) vide number G.S.R564(E), dated the 5th August, 1993 and lastly amended vide notification number G.S.R.407(E), dated the 6th April, 2016.