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  • Center asked to submit details of recovery cases filed by the banks

    January 03, 2017

    The Supreme Court on Tuesday asked the Center to give details of all the recovery cases that have been filed by the banks and other financial institutions along with other such cases that are pending in Debt Recovery Tribunals and their Appellate bodies for the last ten years.

    This order of the court was made in a PIL hearing which was filed by the Centre of Public Interest litigation, which was originally filed to raise the issue of loans advanced to some companies by state- owned Housing and Urban Development Corporation.

    A bench headed by Justice T S Thakur sought for a response on the question as to whether the recovery tribunals are well- equipped to decide the loan recovery cases within a fixed period of time that is provided under the law.

    It was earlier stated that the non- performing assets amount to lakhs of crores of rupees as the recovery mechanism was not too well and the facilities at the DRTs and Debt Recovery Appellate Tribunals which are meant for recovering loans of financial institutions are very disappointing.
     
    The court said, “There are lakhs of crores of rupees as NPAs and one of the reasons for their non-recovery is that the mechanism for recovery is not up to the mark.” In one of the PILs that was filed earlier relating to lack of infrastructure, manpower and other facilities at the DRTs and DRATs which essentially dealt with banks and FIIs loan recovery petitions, the court had reserved its decision.
     
    The court while hearing this PIL, filed in 2003 by the Centre for Public Interest Litigation (CPIL), which originally raised the issue of loans advanced to some companies by state-owned Housing and Urban Development Corporation (HUDCO) made this decision. The plea also mentioned that about Rs 40,000 crore of corporate debt was written off in 2015.


    OUR TAKE

    The facilities at the DRTs and DRATs have been unsatisfactory for a very long time now and as a result all such parties who have their matters pending at these tribunals suffer unnecessary and unreasonable delays. Therefore, such a decision triggering the center to give explanation for the same was highly required for finding a solution to the issues.


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