Delhi High Court Seeks Expeditious Appointment Of Recovery Officers In DRTs, Framing Of Rules For High Value Recovery Matters Within 3 Weeks

The Delhi High Court has directed the Centre to ensure appointment of Recovery Officers in Debt Recovery Tribunals across India without any delay.A Bench of Justices Vipin Sanghi and Jasmeet Singh sought a status report to be filed in this regard on November 17, the next date of hearing, highlighting the progress made so far.The Bench was hearing a plea raising the issue of delay in disposal of high-value recovery cases pending before the Debt Recovery Tribunals. In one of the earlier hearings in the matter, the Court had directed the respondents to constitute a Committee to examine this situation.The development came after the Court was apprised that applications have been invited for 18 vacancies of Recovery Officers on all India basis."We direct the Central Government to ensure the appointments of Recovery Officers are made without any delay. Further status report– indicating the progress made in this respect, be filed before the next date," the Court said.For appointment of Members to the DRTs, Advocate Ravi Prakash appearing for the Centre apprised the Court that applications received from all over the country, have been processed for 15 vacancies. He submitted that while 69 applicants were found eligible, 12 were found as provisionally eligible.So far as formulation of rules and regulations for dealing with high value recovery matters, i.e. in excess of Rs. 100 crores is concerned, Prakash submitted that the suggestions have been received from several stakeholders.However, Advocate Manisha Agarwal appearing for the petitioner pleaded that banks and financial institutions should also be permitted to put in their suggestions in the matter."There cannot be any dispute about the same. It shall be open to the petitioner as well as the association of banks and financial institutions to submit their suggestions to the Central Government within a week," the Court said.The Bench directed the Central Government to publish all the suggestions and responses received by it on their website so as to ensure that that all persons interested can go through the same."It should also be possible for all stakeholders to make further suggestions or respond to the suggestions already received, which should also be placed on the website of the Central Government," the Court ordered.It added:"At least one week should be provided for the purpose of online interaction in this manner. After two weeks, the Central Government should hold an open house and invite all stakeholders in a physical meeting and thrash out all the proposals and, on the basis of the same, we expect the Central Government to place before this Court the rules and regulations that they propose to frame within three weeks."Earlier, the Court had condemned the delay by Central Government in appointing Presiding officers to Debt Recovery Tribunals across the country.The Court also noticed that despite the Supreme Court directing for lawyers with 10 years standing or more being qualified to offer their candidature for appointment to the DRT, the respondent had till date not implemented the said decision.Case Title: Edelweiss Asset Reconstruction Co. Ltd. v. Secretary, Department of Financial Services & Ors. Click here to download Order

Delhi High Court Seeks Expeditious Appointment Of Recovery Officers In DRTs, Framing Of Rules For High Value Recovery Matters Within 3 Weeks

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Delhi High Court Seeks Expeditious Appointment Of Recovery Officers In DRTs, Framing Of Rules For High Value Recovery Matters Within 3 Weeks

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