Supreme Court pulls up finance ministry for burdening debt recovery tribunals

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Subscribe to enjoy similar stories. The Supreme Court recently reprimanded the ministry of finance for treating Debt Recovery Tribunals as a subordinate entity—a factor that experts say impedes the already overburdened DRTs dealing with hundreds of thousands of pending cases. The rebuke followed a report submitted by the presiding officer of the DRT in Visakhapatnam to the top court, revealing that the quasi-judicial body’s staff had been directed to assist the finance ministry in tasks such as data compilation, undermining the tribunal’s functioning.

Experts said the ministerial interference hampers the DRT’s ability to function effectively, resulting in delays in debt recovery cases and substantial financial losses for creditors. These delays exacerbate the issue of non-performing assets, or loans not repaid in time, and diminish the value of collateral, ultimately reducing recoverable amounts for creditors. The Supreme Court in its order noted a shocking state of affairs at the DRT.

“The ministry of finance, department of financial services, called upon the learned member of the DRT to submit data. The extent of data requested from the DRT required a considerable effort by the registrar, necessitating that the stenographers and staff attached to the DRT devote the second session to collating this data. Prima facie, it appears to us that the ministry of finance is treating the office of the debt recovery tribunal as a subordinate office," the court said.