Debt Recovery Tribunal has passed an order for recovery of ₹5 crore against Prism Ltd. and its directors. What modes of recovery are available to recovery officer? Advise.

When a Debt Recovery Tribunal (DRT) has passed an order for the recovery of ₹5 crore against Prism Ltd. and its directors, the Recovery Officer is empowered to enforce this order. As per the provisions of Section 25 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act), the Recovery Officer shall, on receipt of the copy of the certificate under sub-section (7) of Section 19, proceed to recover the amount of debt specified in the certificate by one or more of the following modes: Attachment and Sale of Property: The Recovery Officer can attach and sell the movable or immovable property of the defendant (Prism Ltd. and its directors, if they are held personally liable). This is a primary mode of recovery. Arrest and Detention in Prison: The Recovery Officer has the power to order the arrest of the defendant and their detention in prison. This is usually a coercive measure applied when other recovery methods are not effective or if there is an attempt to evade payment. Appointment of Receiver: The Recovery Officer can appoint a receiver for the management of the movable or immovable properties of the defendant. The receiver manages the assets and uses the income generated or sells the assets to recover the debt. Other Modes (as per Section 28 of RDDBFI Act): In addition to the above, Section 28 of the RDDBFI Act provides for other modes of recovery, which include: Attachment of any movable or immovable property belonging to the defendant. Appointment of a receiver for the management of the movable or immovable properties of the defendant. Recovery of arrears of tax or other sums due to the Government. Any other mode of recovery as may be prescribed. Advice: The Recovery Officer will typically prioritize the attachment and sale of properties to recover the debt. The arrest and detention of directors would be a more extreme measure, usually considered if there is non-cooperation or deliberate evasion. The appointment of a receiver is useful for managing ongoing assets or businesses to generate funds for recovery. Prism Ltd. and its directors should cooperate with the Recovery Officer to avoid further coercive actions and ensure the recovery process is completed efficiently.