debt recovery tribunal

The Supreme Court has ruled that criminal proceedings against loan defaulters must cease if a settlement is reached with the bank. Such actions, the court stated, are oppressive and abuse judicial processes, potentially harming the economy. Allowing banks to pursue criminal cases after a compromise undermines settlement sanctity and discourages dispute resolution.

The matter was heard by a Bench of Justice Ahsanuddin Amanullah and Justice R. Mahadevan in a Special Leave Petition filed by M/s Bhaskar International Private Limited and others against SBI. M/s Bhaskar International Private Limited v. State Bank of India

Major ₹2.5cr Bank of Maharashtra Settlement Finalised

In a significant ruling, the Bombay High Court has dismissed the FIR against HDFC Bank's CEO, Sashidhar Jagdishan, and other associates, initiated by the Lilavati Hospital Trust. The court characterized the lawsuit as a retaliatory measure amidst ongoing financial disputes among the trustees, emphasizing the importance of unfettered recovery processes in the banking sector.

The government today approved setting up of six new debt recovery tribunals (DRTs) to expedite cases pertaining to bad loans.

The decision to double the limit to Rs 20 lakh for filing applications in debt recovery tribunals will help them focus on high-value matters leading to a quicker recovery of bad loans, the Finance Ministry said Tuesday.

The banks had sought a recovery certificate from the DRT under Recovery of Debt Due to Banks and Financial Institutions Act, 1993.

The Debts Recovery Tribunal (DRT) is well within its rights to impound the passport of a defaulter to prevent him from leaving the country, the Madras high court has ruled.