Subrata, one of the guarantors for debt facilities taken by Krishna Ltd., is aggrieved against the order of recovery officer of the Debt Recovery Tribunal (DRT). He intends to initiate action against order of the recover
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · December 2015
Subrata, one of the guarantors for debt facilities taken by Krishna Ltd., is aggrieved against the order of recovery officer of the Debt Recovery Tribunal (DRT). He intends to initiate action against order of the recovery officer. Advise him about next course of action.
Answer & Explanation:
Any person aggrieved by an order of the Recovery Officer made under this Act may, within thirty days from the date on which a copy of the order is issued to him, prefer an appeal to the Tribunal. On receipt of an appeal, the Tribunal may, after giving an opportunity to the appellant to be heard, and after making such inquiry as it deems fit, confirm, modify or set aside the order made by the Recovery Officer in exercise of his powers under Sections 25 to 28 (both inclusive). In the cases of Pravin Gada v. Central Bank of India [2013] 176 Comp Cas 101(SC), Allahabad Bank v. Canara Bank [2000] 101 Comp Cas 64 (SC) and Rajsthan Financial Corporation v. Official Liquidator [2005] Com Cas 387(SC), Supreme Court held that anyone who is aggrieved by any act done by the Recovery Officer can prefer an appeal. The Debts Recovery Tribunal has the powers under the 1993 Act to make an enquiry as it deems fit and confirm, modify or set aside the order made by the Recovery Officer in exercise of powers under sections 25 to 28 of the 1993 Act.
Topics: Insolvency
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