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In this article, we will discuss the stay in proceedings and process of recovery of NPA.
Table of Contents
Section 21 provides that where the appeal is preferred by any person from whom the amount of the debt is due to the bank or a financial institution or a consortium of banks or the financial institutions, such an appeal shall not be entertained by an Appellate Tribunal except such a person has deposited with an Appellate Tribunal [50%] of the amount of the debt so due from him as determined by Tribunal Provided that an Appellate Tribunal may, for the reasons to be recorded in writing, reduce an amount to be deposited by such an amount which shall not be less than 25% of the amount of such a debt so due to being deposited under this section.
Section 22 deals with the procedure & powers of a Tribunal & the Appellate Tribunal. Sub-section (1) provides that the Tribunal and the Appellate Tribunal shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908, but shall be guided by the principles of natural justice.
The proceedings before the Debt Recovery Appellate Tribunal (DRAT) is governed by Debt Recovery Appellate Tribunal (Procedures) Rules, 1993. In addition, Section 22 of the Act permits the Tribunal and the Appellate Tribunal to regulate their own procedure including the places at which they shall have their settings. Sub-section (2) provides that the Tribunal and the Appellate Tribunal shall have, for the purposes of discharging their functions under this Act, the same powers as are vested in a civil court under a Code of the Civil Procedure, 1908, while trying the suit, in respect of the following matters, namely:
Section 23(1) provides that a Bank or a Financial Institution making an application to a Tribunal or an appeal to an Appellate Tribunal may authorize one or more legal practitioners or any of its officers to act as the (P.O) Presenting Officers & every person so authorized by it may present its event before the Tribunal or the Appellate Tribunal. Sub-section (2) states that the defendant may either appear in person or authorize one or more legal practitioners or any of his or its officers to present his or its case before the Tribunal or the Appellate Tribunal.
Section 24 states that the provisions of the Limitation Act, 1963, shall, as far as may be, apply to an application made to a Tribunal.
Modes of recovery of debts Section 25 states that the Recovery Officer shall, on receipt of copy of the certificate may proceed to recover the amount of debt specified in certificate by 1 or more of the following modes, namely:—
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