Bombay HC urges ministry of finance to have two DRATs in Mumbai

Of the five Debt Recovery Appellate Tribunal (DRAT) in India only two are functioning at the moment because the chairpersons of the remaining three have either retired or resigned from the post. This is causing severe hardships to litigants and advocates.

The scenario that emerges for a litigant in Mumbai be it bank or an individual, has to travel to Allahabad in Uttar Pradesh which is around 1,500 kilometres away to get an interim order or urgent hearing. The Bombay High Court recently pulled up the Union Ministry of Finance and directed it to consider having two benches of DRAT in Mumbai to avert such instances where litigants, advocates are made to suffer.

There are five DRATs in the country of which three — Delhi, Chennai and Mumbai don't have chairpersons. The DRAT in Mumbai is vacant for a few months as the member retired, last year he had proceeded on medical leave and thereby litigants had to move the Chennai tribunal for urgent reliefs.

Later, when the high court reprimanded the ministry an alternative arrangement was made, chairperson from Chennai used to visit Mumbai for hearing urgent matters. Justices SC Dharmadhikari and GS Kulkarni have now in their recent order directed the government to reply in two months. "Why the Union of India and the government cannot set up two Debts Recovery Appellate Tribunals in Mumbai so as to take care of the current situation. Meaning thereby, in the absence of a chairperson, parties and advocates are inconvenienced to such an extent that they have to travel to far off states for finding a chairperson and functional Debts Recovery Appellate Tribunal," said the bench.

Additional solicitor general Anil Singh and advocate Mohamedali Chunawala, appearing for the ministry of finance agreed to place on record steps that are being taken to take care of the present situation, emerging from total absence of any Chairperson in the Debts Recovery Appellate Tribunals at Mumbai, Chennai and Delhi, on the next date of hearing."

However, to rectify the present situation of non-availability of chairperson at the DRAT in Mumbai the ministry informed the court that it will be deputing the chairperson of the Debts Recovery Appellate at Allahabad to visit Mumbai every alternate week and hold a sitting so as to dispose of urgent cases.

The directions were given during the hearing of a petition filed by one Suraj Jadhav who had approached the court highlighting the problems faced by the litigants after the Mumbai chairperson of DRAT proceeded on a medical leave in April last year.

Matters before the DRT and debt recovery appellate authority (DRAT) are tried under the securitisation and reconstruction of Financial Assets and Enforcement of Securities Act, and the Recovery of Debts Due to Banks and Financial Institutions Act.