recovery-of-debts-and-bankruptcy-act-faq

FAQ About the Final Order That May Be Passed by Debts Recovery Tribunal on the Recovery Application(Original Application) Filed by Banks/ Financial Institutions

Answer: The Debts Recovery Tribunal may, after giving the applicant and the defendant, an opportunity of being heard, in respect of all claims, set-off or counter-claim, if any, and interest on such claims, pass interim or final order as it deems fit which may include order for payment of interest from the date on which payment of the amount is found due up to the date of realisation or actual payment.

(See Section 19(20) of RDB Act, 1993)

Answer: After passing the final order, the Presiding Officer of the Debts Recovery Tribunal has to issue a certificate of recovery for payment of the debt with interest under his signature to Recovery Officer of the Debts Recovery Tribunal for recovery of the amount of debt specified in the recovery certificate. 

(See Section 19(22) of RDB Act, 1993)

Answer: Any recovery certificate issued by the Presiding Officer of the Debts Recovery Tribunal to the Recovery Officer of the Debts Recovery Tribunal shall be deemed to be decree or order of the Court for the purposes of initiation of winding up proceedings against a company registered under the Companies Act, 2013 or Limited Liability Partnership registered under the Limited Liability Partnership Act, 2008 or insolvency proceedings against any individual or partnership firm under any law for the time being in force, as the case may be.

(See Section 19(22A) of RDB Act, 1993)

Answer: The Debts Recovery Tribunal may make such orders and give such directions as may be necessary or expedient to give effect to its orders or to prevent abuse of its process or to secure the ends of justice.

(See Section 19(25) of RDB Act, 1993)

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