Vidhi Codex

The Recovery Of Debts And Bankruptcy Act, 1993

The Recovery Of Debts And Bankruptcy Act, 1993

Corporate199345 sections6 chapters

The Recovery of Debts and Bankruptcy Act, 1993, streamlines how banks and financial institutions recover unpaid loans from individuals and partnership firms. It regulates the creation of specialized Debts Recovery Tribunals to handle these legal disputes outside traditional, slow-moving civil courts. Generally applying to debts over ten lakh rupees, the Act covers commercial, rural, and co-operative banks. It matters because it ensures fast-track resolution, preventing huge sums of public money from being trapped in lengthy litigation. By efficiently recovering these funds, the Act helps recycle capital to support the country's broader overall national economic development.

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Chapter I PRELIMINARY →

  1. 1Short title, extent, commencement and application.
  2. 2Definitions.

Chapter II ESTABLISHMENT OF TRIBUNAL AND APPELLATE TRIBUNAL →

  1. 3Establishment of Tribunal.
  2. 4Composition of Tribunal.
  3. 5Qualifications for appointment as Presiding Officer.
  4. 6Term of office of Presiding Officer.
  5. 6AQualifications, terms and conditions of service of Presiding Officer.
  6. 7Staff of Tribunal.
  7. 8Establishment of Appellate Tribunal.
  8. 9Composition of Appellate Tribunal.
  9. 10Qualifications for appointment as Chairperson of the Appellate Tribunal.
  10. 11Term of office of Chairperson of Appellate Tribunal.
  11. 12Staff of the Appellate Tribunal.
  12. 13Salary and allowances and other terms and conditions of service of Presiding Officers.
  13. 14Filling up of vacancies.
  14. 15Resignation and removal.
  15. 15AQualifications, terms and conditions of service of Chairperson.
  16. 16Orders constituting Tribunal or an Appellate Tribunal to be final and not to invalidate its proceedings.

Chapter III JURISDICTION, POWERS AND AUTHORITY OF TRIBUNALS →

  1. 17Jurisdiction, powers and authority of Tribunals.
  2. 17APower of Chairperson of Appellate Tribunal.
  3. 18Bar of jurisdiction.

Chapter IV PROCEDURE OF TRIBUNALS →

  1. 19Application to the Tribunal.
  2. 19AFiling of recovery applications, documents and written statements in electronic form.
  3. 20Appeal to the Appellate Tribunal.
  4. 21Deposit of amount of debt due, on filing appeal.
  5. 22Procedure and powers of the Tribunal and the Appellate Tribunal.
  6. 22AUniform procedure for conduct of proceedings.
  7. 23Right to legal representation and Presenting Officers.
  8. 24Limitation.

Chapter V RECOVERY OF DEBT DETERMINED BY TRIBUNAL →

  1. 25Modes of recovery of debts.
  2. 26Validity of certificate and amendment thereof.
  3. 27Stay of proceedings under certificate and amendment or withdrawal thereof.
  4. 28Other modes of recovery.
  5. 29Application of certain provisions of Income-tax Act.
  6. 30Appeal against the order of Recovery Officer.
  7. 30ADeposit of amount of debt due for filing appeal against orders of the Recovery Officer.

Chapter VI MISCELLANEOUS →

  1. 31Transfer of pending cases.
  2. 31APower of Tribunal to issue certificate of recovery in case of decree or order.
  3. 31BPriority to secured creditors.
  4. 32Chairperson, Presiding Officer and staff of Appellate Tribunal and Tribunal to be public servants.
  5. 33Protection of action taken in good faith.
  6. 34Act to have overriding effect.
  7. 35Power to remove difficulties.
  8. 36Power to make rules.
  9. 37Repeal and saving.

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