'Alarming Situation': Allahabad HC Flags Non-Functioning Of DRT Prayagraj, Asks Finance Ministry To Expedite Appointments

The Allahabad High Court on Friday took note of the prolonged non-functioning of the Debts Recovery Tribunal (DRT) at Prayagraj due to a lack of a presiding officer. Terming the situation as 'alarming', it urged the Ministry of Finance to urgently fill up the vacant posts at DRT. A bench of Justice Shekhar B Saraf and Justice Praveen Kumar Giri passed the order while hearing a writ petition wherein the petitioner had challenged an ex-parte order passed under Section 14 of the SARFAESI Act, 2002. The petitioner also sought protection against coercive recovery measures as he submitted that, as a guarantor, he was always ready to pay the amount due upon the borrower. The Court noted that, like the present case, multiple such writ petitions seeking the same relief were being filed before the High Court owing to the non-functionality of the Prayagraj DRT. It noted that although urgent matters were temporarily being handled by DRT Jabalpur, even that arrangement had ceased after the additional charge given to DRT Jabalpur expired on June 24, 2025, and now, no matters are being heard, even if they are urgent. "The above situation is alarming and is resulting in inordinate delay in matters being heard", the Bench remarked, adding that parties like the petitioner are left without remedy due to a non-functioning of DRT. Consequently, the High Court directed its Registry to communicate the present order to the Ministry of Finance and the Office of the Assistant Solicitor General of India (ASGI) at the Allahabad High Court forthwith for necessary action. The Court also directed the ASGI to appear on the next date of hearing. On the merits of the case, relying on the Supreme Court's ruling in Celir LLP v. Bafna Motors (Mumbai) Pvt. Ltd. And Ors 2023 LiveLaw (SC) 808, the Court declined to grant interim relief to the petitioner as it noted that the secured property had already been sold (in December 2024) and even the sale certificate has also been issued (in March 2025). The Court, however, directed the respondent bank to file its short counter-affidavit within two weeks. The matter has been listed for further hearing on July 29.Case title - Yadunandan Pandey vs. State Of U.P. And 3 OthersClick here To Read/Download Order

'Alarming Situation': Allahabad HC Flags Non-Functioning Of DRT Prayagraj, Asks Finance Ministry To Expedite Appointments

Sparsh Upadhyay

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