RECOVERY OF DEBTS DUE TO BANKS AND FINANCIAL INTUITIONS ACT, 1993
The Recovery of Debts Due to Banks and Financial Institutions Act, 1993, also known as the RDDBFI Act or RDB Act is aimed at helping Banks, Financial Institutions and State Financial Corporations to recover their dues quickly.
The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 empowers to the Government to set up Debts Recovery Tribunal (also known as DRT). Each Debts Recovery Tribunal has Recovery Officers who goes about the job of auctioning of assets for the recovery of dues adjudicated by the Debts Recovery Tribunal.
Debts Recovery Tribunals are basically like any other civil courts, but with some differences. Unlike in civil courts, there is no separate execution proceedings in Debts Recovery Tribunal for auction of assets. The recovery process is dove-tailed into the adjudication process of the Debts Recovery Tribunal itself.
All auctions by Debts Recovery Tribunal is conducted by the Recovery officer of the Debts Recovery Tribunal, or by an officer authorized by him, generally a Recovery Inspector. In some cases, Commissioner or advocate-Commissioner is appointed who conducts the auction for and on behalf of the Recovery Officer of the Debts Recovery Tribunal.
Chapter-V of The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (Sections 25 to 30) deal with the procedure of recovery of dues that has been adjudicated by the Debts Recovery Tribunal.
The Recovery Officer of Debts Recovery Tribunal also exercises the provisions of Schedule-II and Schedule-III of the Income Tax.