What are the orders that can be issued by The Debt Recovery Tribunal (DRT) once the dues have been finalised to be paid. If the DRT has issued a certificate of recovery against a Company and such company is under liquida
CS Professional · Corporate Restructuring, Insolvency, Liquidation & Winding-up · PYQS · December 2023
What are the orders that can be issued by The Debt Recovery Tribunal (DRT) once the dues have been finalised to be paid. If the DRT has issued a certificate of recovery against a Company and such company is under liquidation. What orders can be issued by the DRT to recover the dues ?
Answer & Explanation:
When it is proved to the satisfaction of the Debt Recovery Tribunal (Tribunal) that the claim of the applicant has been adjusted wholly or in part by any lawful agreement or compromise in writing and signed by the parties or where the defendant has repaid or agreed to repay the claim of the applicant, further, the Tribunal may after giving the applicant and the defendant, an opportunity of being heard, in respect of all claims, set-off or counter-claim, if any, and interest on such claims, within thirty days from the date of conclusion of the hearings, pass interim or final order as it deems fit which may include order for payment of interest from the date on which payment of the amount is found due up to the date of realisation or actual payment. The Tribunal after it appeared to be just and convenient, the Tribunal may, by order: Appoint a receiver of any property Remove a person from the possession or custody of the property, Commit the same to the possession, custody or management of the receiver Confer upon the receiver all such powers as the Tribunal thinks fit Appoint a commissioner for preparation of inventory Where a certificate of recovery is issued against a company as defined under the Companies Act, 2013 and such company is under liquidation, the Tribunal may by an order direct that the sale proceeds of secured assets of such company be distributed in the same manner as provided in section 326 of the Companies Act, 2013 or under any other law for the time being in force.
Topics: Debt Recovery Tribunal (DRT)
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