Lucknow: The Lucknow bench of Allahabad High Court on Tuesday expressed anguish that the Central government is not filling posts of presiding officers in debt recovery tribunals (DRTs) and debt recovery appellate tribunals (DRATs) across the country.
“If the government is unable to appoint competent persons as presiding officers and chairmen in DRTs/DRATs, it is better that the concerned enactment is scrapped and the tribunals are abolished,” said the bench. Passing the remark in his order, Justice Dinesh Kumar Singh directed the secretary, ministry of finance, government of India to file response within two weeks as to what was preventing the government to appoint presiding officers and chairmen in DRTs/DRATs, lying vacant for several months.
The bench passed the order on the petition moved by Canara Bank, which, in connection with a debt recovery dispute, had directly approached the high court instead of approaching the tribunal first. On being asked, the petitioner apprised the bench that debt recovery tribunals have been vacant across the country for long and as such the aggrieved persons have to approach the HC directly , having no other option.
The bench found that the Recovery of Debts and Bankruptcy Act, 1993 provides for establishment for DRT and DRAT for the purpose of adjudicating the disputes for recovery of the loan advanced by the financial institutions and for the said purposes, the tribunals and appellate tribunals have been set up and adjudicatory mechanism have been provided under the act and rules framed there under.
“It is unfortunate that after creating mechanism and adjudicatory forum, the posts of Presiding Officer/Chairman have been kept vacant for several months and in some cases years and the litigants have to come to this Court. This increases the burden of the High Court unnecessarily”, observed the bench.
Meanwhile, the bench directed the respondents to maintain status quo in respect of properties in question, while asking the petitioner to serve copy of the petition to assistant solicitor general of India on the day itself.