Unit - 32: Recovery of Debts Determined by Tribunal and Miscellaneous Provisions
Legal & Regulatory Aspects of Banking -
Unit - 32 : Recovery of debts , Determined By Tribunal and Miscellaneous Provisions 1. On receiving recovery certificate , the recovery officer has to proceed for the recovery by attachment and sale of moveable and immoveable property of defendant, arrest and detention in prison of defendant and appointment of receiver.
2. This section has given wide enabling provisions to call money from third party and recovery officer issues notice calling money the third party failing to pay is deemed as defendant .
3. If there is already a decree passed by the Civil Court , the DRT can issue recovery certificate thereon.
Review of the Order/Recovery Certificate – within 60 days of passing the order or issuing the certificate. A company is under winding up process. Whether High Court permission is required to a Bank to proceed against it before DRT - No, as the DRT Act being a special Law having overriding effect over other laws. Recovery Officers appointed under DRT Act can attach and sale movable as well as immovable property of the person against whom order is passed even it the property is not charged to the creditor. If the recovery certificate has clerical / arithmetical mistake Presiding Officer of the Tribunal can correct the same.