TH July 11, 2014 12:19 IST
Union Finance Minister Arun Jaitley has proposed the setting up of a Debts Recovery Tribunal (DRT) in Ernakulam along with five others to be established at various cities in the country. It will be the second DRT for Ernakulam.
The present Ernakulam tribunal, with jurisdiction over Kerala and Lakshadweep, is functioning at Panampilly Nagar in the city.
DRTs deal with cases of debt in excess of Rs.10 lakh, as per the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.
The Ernakulam tribunal had been taking up cases of recovery, but delay in arriving at settlements had been a cause for concern.
The delay is often unavoidable due to the primary necessity to examine a large number of documents and interact with the individuals concerned, banking sources said.
There has been a demand for another tribunal in order to have a speedy settlement of cases, a senior official of Union Bank of India, the Lead Bank of the district, told The Hindu.
The Finance Ministry was keen on settling cases pertaining to recovery of stressed assets within six months, he said.
The location of Ernakulam at the centre of Kerala could be the reason for deciding on setting up yet another tribunal in the city, according to him.
The present tribunal is understood to have about 3,000 cases pending before it. The tribunal, with about 30 employees, generally disposes of about 100-150 cases a month.
The Finance Ministry had already examined the prospects of setting up a new tribunal, a representative of the tribunal said.
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