- Omkar Gokhale
The Bombay High Court (HC) recently observed that it is useless to say the economy will grow when funds of banks and financial institutions are stuck due to delays in resolution of cases in forums due to lack of staff and infrastructure. Noting this, the HC directed the Finance Ministry to look into the enhancement of the Debt Recovery Tribunal (DRT) in Mumbai and other cities.
DRTs are constituted under the Finance Ministry to enable banks and other financial institutions recover their debt from borrowers in a speedy manner.
A Division Bench of Chief Justice Pradeep Nandrajog and Justice Bharati Dangre passed order in pleas filed by Kotak Mahindra Bank and International Asset Reconstruction claiming that their original applications for recovery are meandering in the corridors of DRT since 1999 and are not being considered.
The Bench was irked noticing a near 20-year delay by DRT and said the original application before tribunal has not reached its destination. Writ pleas filed through advocate Rohit Gupta and Vinay Deshpande sought directions from HC to direct Finance Ministry to expedite hearing on their applications.
The Bench directed the petitioners to append its order, along with their pleas, and forward it to the Finance Ministry represented by advocates Rui Rodrigues and Mohammedali Chunawala, who will place them before the FM — who is expected to pass necessary directions, the court said.
Moreover, disposing of writ pleas, the HC directed DRT Mumbai to expedite hearing in original applications from 1999. Earlier, it had raised concerns over functioning of another tribunal dealing with financial disputes.