Preamble - DEBTS RECOVERY TRIBUNAL (PROCEDURE) (AMENDMENT) RULES, 2016

DEBTS RECOVERY TRIBUNAL (PROCEDURE) (AMENDMENT) RULES, 2016

PREAMBLE

In exercise of powers conferred by sub-sections (1) and (2) of section 36 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (51 of 1993), the Central Government hereby makes following rules further to amend the Debts Recovery Tribunal (Procedure) Rules, 1993, namely:--

Rule 1 - Short title and commencement

(1) These rules may be called the Debts Recovery Tribunal (Procedure) (Amendment) Rules, 2016.

(2) They shall come into force on the date of their publication in the Official Gazette.

Rule 2 - RULE 2

In the Debts Recovery Tribunal (Procedure) Rules, 1993, (hereinafter referred to as the principal rules), in rule 2,-

(i) for clause (a), the following shall be substituted, namely:-

A. '(a) "Act" means the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (51 of 1993);';

B. '(aa) "agent means a person duly authorised by a party to present application or to give reply on its behalf before the Tribunal;";

(ii) for clause (f), the following clause shall be substituted, namely:-

'(f) "Presiding Officer" means the Presiding Officer of the Tribunal and includes the Presiding Officer of any other Tribunal, authorised by the Central Government to discharge the function;';

Rule 3 - RULE 3

In the principal rules, in rule 5, after sub-rule (2), the following sub-rule shall be inserted, namely:-

"(2A) After registration of the application under sub-rule (2), the Tribunal shall issue summons to the defendants in Form IV.".

Rule 4 - RULE 4

In the principal rules, in rule 5A, in sub-rule (2) for the words "sixty days", the words "thirty days" shall be substituted.

Rule 5 - RULE 5

In the principal rules, in rule 6, for clause (a), the following shall be substituted, namely:-

"(a) the branch or any other office of the applicant is functioning as a bank or financial institution and maintaining an account in which debt claimed is outstanding for the time being:

Provided that a Debenture Trustee having a claim against any company for redemption of secured debt securities, shall file an application at the place within whose jurisdiction the Debenture Trustee has its principal place of business or at the place where secured asset is located.".

Rule 6 - RULE 6

In the principal rules, for rule 12, the following rule shall be substituted, namely:-

"12. Filing of written statement and other documents by the defendant and by the applicant as a reply to the written statement.-

(1) The defendant may, within a period of thirty days from the date of service of summons, file two complete sets of written statement including claim for set-off or counter claim, if any, along with documents in a paper book form.

(2) A copy of the written statement filed under sub-rule (1) shall be served to the applicant.

(3) If the defendant fails to file the written statement of his defence, including claim for set off or counter claim under sub-rule (1), if any, within the period of thirty days, the Presiding Officer may in exceptional cases and special circumstances to be recorded in writing, extend the period, by such further period not exceeding fifteen days.

(4) If the defendant have filed their claim for set off or counter claim, the applicant shall file reply statement in answer to the claim for set off or counter claim within a period of thirty days of filing of such claims.

(5) If the applicant fails to file his reply within the period of thirty days, the Presiding Officer may, in exceptional cases and special circumstances, to be recorded in writing, extend the period, by such further period not exceeding fifteen days.

(6) The written statement of the defendant including claim for set off or counter claim or any other pleading whatsoever by the defendant or the applicant, as the case may be, shall be supported by an affidavit sworn in by the defendant or the applicant or the witnesses, verifying all the facts and pleadings and other documents annexed and the affidavits of witnesses, to be led by defendant or the applicant shall be filed simultaneously with the written statement of the defendant or the reply of the applicant.

(7) If the defendant or the applicant as the case may be, fails to file the reply as specified above, the Tribunal may proceed forthwith to pass an order on the application as it thinks fit.

(8) Where a defendant makes an admission of the full or part of the amount of debt due to a bank or financial institution, the Tribunal shall order such defendant, to pay such amount, to the extent of the admission, by the applicant within a period of thirty days from the date of such order, failing which the Tribunal may issue a certificate in accordance with section 19 of the Act, to the extent of amount of debt due admitted by the defendant.

(9) The Tribunal may at any time for sufficient reason order that any particular fact or facts shall be proved by affidavit, or that the affidavit of any witness shall be read at the hearing, on such conditions as the Tribunal thinks reasonable:

Provided that after filing of the affidavits by the respective parties where it appears to the Tribunal that either the applicant or the defendant desires the production of a witness for cross examination and that such witness can be produced and it is necessary to do so, the Tribunal shall for sufficient reasons to be recorded, order the witness to be present for cross examination, and in the event of the witness not appearing for cross examination, then, the affidavit shall not be taken into evidence and further that no oral evidence other than that given in this proviso will be permitted.

(10) If the defendant denies his liability to pay the claim made by the applicant, the Tribunal may act upon the affidavit of the applicant who is acquainted with the facts of the case or who has on verification of the record sworn the affidavit in respect of the contents of application and the documents as evidence.

(11) The provisions contained in section 4 of the Banker s Books Evidence Act, 1891 (18 of 1891) shall apply to a certified copy of an entry in a banker's book furnished along with the application filed under sub-section (1) of section 19 by the applicant.".