Rush Bank, a banking company, wants to take action against the defaulting borrower, being Company Secretory advise the appropriate forum to file the petition. Suggest, whether THFL, and MBFC (not a banking company) can f

The Debt Recovery Tribunals have been constituted under Section 3 of the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993. The original aim of the Debts Recovery Tribunal was to receive claim applications from Banks and Financial Institutions against their defaulting borrowers. Debt Recovery Tribunal (DRT) was established for expeditious adjudication and recovery of debts due to banks and financial institutions in order to reduce the non-performing assets of the Banks and Financial Institutions. DRT acts as a single judicial forum for adjudication of cases as well as execution of the decrees passed for recovery of debts due to banks and financial institutions under RDDBFI Act and Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002. Hence Rush Bank can file the petition before the Debt Recovery Tribunal against the defaulting borrower. Assuming THFL and MBFC (not a banking company) being financial institutions can also file the petition before the Debt Recovery Tribunal against the defaulting borrower. However, if THFL and MBFC are non-financial institutions, they cannot file the petition before the Debt Recovery Tribunal against the defaulting borrower.