The Supreme Court on Monday issued notice to the Union of India over the non-appointment of chairpersons in 11 Debt Recovery Tribunals (DRTs) across the country.
The Bench of Chief Justice of India Sanjiv Khanna and Justice PV Sanjay Kumar directed the Central government to file a response within five weeks, followed by three weeks for the petitioner to submit a rejoinder.
The quasi-judicial bodies were established under the Recovery of Debts and Bankruptcy Act, 1993, to deal with loan recovery disputes. they were envisioned to help banks and other creditors recover debts in a fast manner.
However, the functioning of DRTs has faced roadblocks, including the failure to fill vacancies for the members forming these tribunals.
In view of the lack of personnel at the DRTs and the Debts Recovery Appellate Tribunal (DRAT), the Supreme Court had asked High Courts in 2011 to entertain applications that were filed before these fora as a stop-gap measure.
In its December 2021 order, the top court of the country had said that for the time being, the High Courts were being requested to entertain the applications filed before DRT and DRAT under Article 226.
Once the Tribunals were constituted, the matters could be relegated back to the Tribunal, it added.
The Kerala High Court had also reprimanded the Union government in 2022 for its inaction in filling up vacancies at various tribunals, causing irreparable hardship to litigants.
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