Supreme Court Demands Action on Debt Recovery Tribunal Vacancies

The Supreme Court has sought a response from the Ministry of Finance regarding critical vacancies in 11 Debt Recovery Tribunals (DRTs) across India. These vacancies hinder the tribunals' ability to expedite debt recovery. The PIL emphasizes the need for timely appointments to maintain the legal and financial system's efficiency.

The Supreme Court has issued a notice to the Ministry of Finance concerning significant vacancies in 11 Debt Recovery Tribunals (DRTs) across the nation, in response to a public interest litigation (PIL) filed by Nischay Chaudhary. The DRTs, established under the 1993 Recovery of Dues to Banks and Financial Institutions Act, are vital in enabling banks and financial institutions to recover bad debts from borrowers.

The PIL argues that the non-appointment of presiding officers in nearly one-third of the country's 39 DRTs undermines the tribunals' fundamental purpose. It calls for the timely filling of these vacancies and urges the Centre to implement mechanisms to prevent future delays. This situation, according to the plea, compromises the tribunals' efficiency and frustrates the objectives of the 1993 law.

The petitioner has highlighted that pending cases are increasing due to stopgap arrangements where presiding officers of functioning tribunals are given additional charges, leading to a focus only on urgent matters. The plea points towards a need for the government to demonstrate serious commitment to addressing and resolving these appointments to ensure the DRTs operate smoothly, protecting the legal and financial system's integrity.

(With inputs from agencies.)