DRT functioning pace draws flak

Source:Staff Reporter/The Hindu March 16,2010

Number of cases pending disposal on the rise

Coimbatore: The number of cases pending disposal 

seems to be on the rise as far as the Debt Recovery 

Tribunal (DRT), Coimbatore, is concerned. Lawyers

and bankers awaiting orders remain an anguished lot. 

The reason for the slump in pace of disposal is mainly 

attributed to the absence of the Presiding Officer (PO), 

who had gone on long leave.

The PO at Madurai holding

additional charge of Coimbatore is visiting once a fortnight. 

 
A cross section of bankers approaching the lawyers seems to

have lost faith in the system, because orders have not been 

issued in many cases. Bankers pointed out that it was taking

more than 18 to 24 months to even get a recovery certificate. 

L.S. Lakshmanan, president, DRT Advocates Association,

said originally two DRTs were sanctioned for Coimbatore,
but even before DRT II took off, the Government notified
the establishment of new DRTs in Madurai and Chennai,
reallocating the districts for the DRTs.

This resulted in Coimbatore, Nilgiris and Tirupur districts

remaining with Coimbatore while Erode, Salem, Namakkal, 

Tiruchi, Dindigul, Theni and Madurai districts were transferred

to the jurisdiction of DRT, Madurai. Dharmapuri and Pudukottai 

districts that remained with DRT, Coimbatore, were

transferred to DRT III in Chennai.

 
Writ 
 
Mr. Lakshmanan said that the association filed a writ before

the Madras High Court seeking justification for such reallocation,

especially because districts such as Salem, Erode and Namakkal 

were within a radius of 100 - 150 km from here. 

The Government in its counter contended that the
redistribution of the districts was not on the basis
of geographical location or proximity, but on account of the

number of pending cases. 

Perusal of the pending cases reveal that 901 cases were pending

before DRT, Coimbatore, compared to 2,260 in 2002 when DRT

came into being i.e., when files were transferred from DRT I and II, Chennai. 

“The disposal rate had been speedy and it witnessed a slump
only when the post of Presiding Officer remained vacant
between 2003 and 2005,” Mr. Lakshmanan said.
But things started improving thereafter and it was short lived.

The bone of contention now is not just the absence of PO alone. 

The concerns include staff shortage and jurisdiction
issue consequent to the establishment of a DRT in Madurai.

Delay 
 
Transfer of cases to tribunals based on jurisdiction often led
to a delay of six months for disposal since it required fresh
serving of notices to all defendants after re-numbering the
cases in the new tribunal, he said.

Similarly, indexing, transportation of bundles, verification
and re-numbering of cases also added up to the delay.

Hence, transfer of cases pertaining to Erode and Salem
would be only a counter productive measure, he added.

A Special Leave Petition filed by the DRT Advocates
Association against the order of the High Court had been
admitted and was due to be heard soon, said Mr. Lakshmanan.
Many advocates say that since DRT is a forum for adjudication
of cases, it should function under the Law Ministry.

And the Presiding Officer should be well-versed in
Civil Law. Appointment of a retired/sitting District Judge as the PO will be ideal.
Mr. Lakshmanan said that the proceedings under the Securities
and Reconstruction of Financial Assets and Enforcement of Security
Interests (SARFAESI) Act also faced similar problems because
the DRT was the platform for recovering bank dues.
 
The delay and backlog
has come as a blessing in disguise for the borrowers
who eventually become the beneficiaries.
There have been instances of the borrowers selling out properties
ignoring the banks’ charges, the advocates point out.
They also want the mortgages to be outside the purview of the
SARFAESI Act and should be brought under the scanner.




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