Legal Question in Business Law in India

07.03.2015

Dear Sir / Madam,

Section 5A and Section 18 of THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002

(54 OF 2002) read :

5A. Transfer of pending applications to any one of Debts Recovery Tribunals in certain cases

(1) If any financial asset, of a borrower acquired by a securitisation company or

reconstruction company, comprise of secured debts of more than one bank or financial

institution for recovery of which such banks or financial institutions has filed applications

before two or more Debts Recovery Tribunals, the securitisation company or reconstruction

company may file an application to the Appellate Tribunal having jurisdiction over any of such

Tribunals in which such applications are pending for transfer of all pending applications to

any one of the Debts Recovery Tribunals as it deems fit.

(2) On receipt of such application for transfer of all pending applications under sub-

section (1), the Appellate Tribunal may, after giving the parties to the application an

opportunity of being heard, pass an order for transfer of the pending applications to any one

of the Debts Recovery Tribunals.

(3) Notwithstanding anything contained in the Recovery of Debts Due to Banks and

Financial Institutions Act, 1993, any order passed by the Appellate Tribunal under sub-

section (2) shall be binding on all the Debts Recovery Tribunals referred to in sub-section (1)

as if such order had been passed by the Appellate Tribunal having jurisdiction on each such

Debts Recovery Tribunal. (4) Any recovery certificate, issued by the Debts Recovery Tribunal to which all the pending applications are transferred under sub-section (2), shall be executed in accordance with the provisions contained in sub-section (23) of section 19 and other provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 shall, accordingly, apply to such execution.

18. Appeal to Appellate Tribunal

(1) Any person aggrieved, by any order made by the Debts Recovery Tribunal under section 17, may prefer an appeal alongwith such fee, as may be prescribed to the Appellate Tribunal within thirty days from the date of receipt of the order of Debts Recovery Tribunal: PROVIDED that different fees may be prescribed for filing an appeal by the borrower or by the person other than the borrower:

PROVIDED FURTHER that no appeal shall be entertained unless the borrower has deposited with the Appellate Tribunal fifty per cent. of the amount of debt due from him, as claimed by the secured creditors or determined by the Debts Recovery Tribunal, whichever is less:

PROVIDED ALSO that the Appellate Tribunal may, for the reasons to be recorded in writing, reduce the amount to not less than twenty-five per cent. of debt referred to in the second proviso.

(2) Save as otherwise provided in this Act, the Appellate Tribunal shall, as far as may be, dispose of the appeal in accordance with the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act,1993 (51 of 1993) and rules made thereunder.

For more detail, please refer the following link :

http://www.drat.tn.nic.in/Docu/Securitisation-Act.pdf

Regards,