Debt Recovery Laws

Prem Kumar Gupta Vs Bank of India

Delhi High Court in a recent Ruling in the above Case held that Debt Recovery Tribunals cannot issue warrant of arrest despite non -appearance on issuance of summons as issuance of warrant of arrest is beyond jurisdiction. For non-appearance on issuance of summons, the Tribunal can decide the matter ex parte and there is no power vested in the Tribunal to compel or enforce attendance of the defendant at the stage of adjudication on the claim under section 19 of the RDDBFBI Act.

Delhi High Court further held that DRT cannot direct pre-deposit of a part of the amount claimed even before liability was determined as “Debt” under Section 2(g) of the DRT Act , unless determined and adjudicated by a competent forum cannot be said to be due and unless there is a due no pre-deposit can be directed to be deposited.

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