The Supreme Court has sent notices to the Ministry of Finance regarding important job openings in Debt Recovery Tribunals.
The Supreme Court has sent notices to the Ministry of Finance regarding a Public Interest Litigation (PIL) that points out significant vacancies in Debt Recovery Tribunals (DRTs) throughout India. A bench led by Chief Justice Sanjiv Khanna and Justice Sanjay Kumar listened to arguments from Senior Advocate KB Sounder Rajan and Lawyer Sudarshan Rajan, representing PIL petitioner Nischay Chaudhary, and requested a response from the Union Ministry of Finance. The PIL claims that about one-third of the 39 DRTs in the country are not operational due to a lack of Presiding Officers, which hampers their main goal of speeding up debt recovery for banks and financial institutions. DRTs were established under the Recovery of Dues to Banks and Financial Institutions Act of 1993 to help banks recover bad debts from borrowers.
As of September 30, 2024, the PIL states that 11 DRTs are without Presiding Officers, greatly affecting their ability to handle cases effectively. The petitioner argues that this lack of action undermines the purpose of the 1993 law, which was designed to ensure timely debt resolution. The PIL also highlights that quick justice is a fundamental right under Articles 14 and 21 of the Constitution, as affirmed by the Supreme Court in the 2020 case of District Bar Association Dehradun vs. Ishwar Shandilya.
The PIL requests that the Ministry of Finance provide records related to the selection and appointment of Presiding Officers in DRTs to assess the government’s commitment to filling these vacancies. It also calls for the Centre to ensure timely appointments and create systems to avoid future delays. As temporary measures, the PIL asks that the powers of inactive DRTs be transferred to other tribunals to maintain service continuity. The PIL concludes by urging the court to issue further orders to ensure the effective operation of DRTs in the interest of justice.