 An Act to provide for the establishment of Tribunals for expeditious adjudication and recovery of debts due to banks and financial institution and for matters connected therewith or incidental thereto.  A co-operative bans does not fall within the definition of “bank” in Cl. (d) of S.2: Phoneix impex v. State of Rajasthan A.I.R. Raj. 100 (D.B)

 DRT is a Tribunal and not a Court  Difference between DRT and Court procedures  The Show-Cause concept and Principles of Natural Justice  Right of rebuttal

 2[(g) “debt” means any liability (inclusive of interest) which is claimed as banks or financial institutions during the course of any business activity undertaken by the bank or the financial institution or the consortium under any law for the time being in force, in cash or otherwise, whether secured or unsecured, or assigned, or whether payable under a decree or order of any civil Court or any arbitration award or otherwise or under a mortgage and subsisting on, and legally recoverable on, the date of the application;  Caselet on concept of debt  Caselet on functional jurisdiction of DRTs

 Phase I – Before the Registrar  Step 1 : Filing the application  Step 2 : Scrutiny and Registration by the Registrar  Step 3 : Issue of summons  Phase II – Before the Presiding Officer  Step 1 : Filing of evidence by bank.  Step 2 : Filing of written statement/ claims/ counterclaims for set off by the respondent  Step 3 : Arguments by the bank and the defendant, Final order by the DRT  Phase III - Status & jurisdiction of Recovery Officer

29. Application of certain provisions of Income-Tax Act – the provisions of the Second and Third Schedules to the Income- Tax Act, 1961 (43 of 1961) and the Income- Tax (Certified Proceedings) Rules, 1962 as in fore from time to time shall, as far as possible, apply with necessary modifications as if the said provisions and the rules referred to the amount of debt due under this Act instead of to the Income-Tax.

 Caselaw on appointment of Receiver in course of liquidation proceedings  Caselaw on ‘symbolic possession’ by the Receiver

 Attachment of movable property  Attachment of movable property other than agricultural produce  Value of attached property  Attachment timings  Attachment of agricultural produce  Attachment of debt recoverable  Property in the custody of Civil Court or Public Officer  Sale of movable property  Proclamation of sale  Actual sale and police protection  Objection/ Claims against sale  Realisation of auction proceeds  Irregularity in auction proceedings

 Attachment of immovable property  Attachment of immovable property vs. movable property  Proclamation of sale  Sale by way of auction  In case of non-realisation of auction proceeds  Common problems arising at the time of auction of immovable properties  Caselet I on problems in auction proceedings  Caselet II on problems in auction proceedings  Caselet III on problems in auction proceedings  Postponement of sale  Setting aside the sale  Confirmation of sale & delivery of property to the auction purchaser  Registration of the certificate of sale  Delivery of property to the auction purchaser, Purchaser’s title

 Caselaw on compromise at DRT proceedings

17. Jurisdiction, powers an authority of Tribunals.- (1) A Tribunal shall exercise, on and from the appointed day, the jurisdiction, powers and authority to entertain and decide applications from the banks and financial institutions for recovery of debts due to such banks and financial institutions. 18. Bar of jurisdiction – On and from the appointed day, no Court or other authority shall have, or be entitled to exercise, any jurisdiction, powers or authority (except the Supreme Court, and High Court exercising jurisdiction under articles 226 and 227 of the Constitution) in relation to the matters specified in section 17.  No jurisdiction to entertain winding up issues  Counterclaims filed by defaulting borrowers before Civil Court (important case laws)