The Recovery Of Debts And Bankruptcy Act, 1993
Administered Ministry: Ministry of Finance / Department of Financial Services
Section
Section 1 Short title, extent, commencement and application. 1 docs
(1) This Act may be called the Recovery of Debts 1[and Bankruptcy] Act, 1993.
(2) It extends to the whole of India except the State of Jammu and Kashmir*.
(3) It shall be deemed to have come into force on the 24th day of June, 1993.
(4) 2[Save as otherwise provided, the provisions of this Code] Act shall not apply where the amount of debt due to any bank or financial institution or to a consortium of banks or financial institutions is less than ten lakh rupees or such other amount, being not less than one lakh rupees, as the Central Government may, by notification, specify.
(2) It extends to the whole of India except the State of Jammu and Kashmir*.
(3) It shall be deemed to have come into force on the 24th day of June, 1993.
(4) 2[Save as otherwise provided, the provisions of this Code] Act shall not apply where the amount of debt due to any bank or financial institution or to a consortium of banks or financial institutions is less than ten lakh rupees or such other amount, being not less than one lakh rupees, as the Central Government may, by notification, specify.
1. Subs. by Act 31 of 2016, s. 249 and the Sch. V, for "Due to Banks and Financial Institutions" (w.e.f. 1-12-2019) .
2.Subs, by s. 249 and the Sch. V, ibid for "The provision of this Act" (w.e.f. 1-12-2019).
*. Vide notifn No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh.
2.Subs, by s. 249 and the Sch. V, ibid for "The provision of this Act" (w.e.f. 1-12-2019).
*. Vide notifn No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh.
Section 2 Definitions.
In this Act, unless the context otherwise requires,---
(a) "Appellate Tribunal" means an Appellate Tribunal established under sub-section (1) of section 8;
(b) "application" means an application made to a Tribunal under section 19;
(c) "appointed day", in relation to a Tribunal or an Appellate Tribunal, means the date on which such Tribunal is established under sub-section (1) of section 3 or, as the case may be, sub-section (1) of section 8;
(d) "bank" means---
(i) banking company;
(ii) a corresponding new bank;
(iii) State Bank of India;
(iv) a subsidiary bank; or
(v) a Regional Rural Bank;
1[(vi) a multi-State co-operative bank;]
(e) "banking company" shall have the meaning assigned to it in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
2[(ea) "Chairperson" means a Chairperson of an Appellate Tribunal appointed under section 9;]
(f) "corresponding new bank" shall have the meaning assigned to it in clause (da) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
3[(g) "debt" means any liability (inclusive of interest) which is claimed as due from any person 4[or a pooled investment vehicle as defined in clause (da) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956)] by a bank or a financial institution or by a consortium of banks or financial institutions during the course of any business activity undertaken by the bank or the financial institution or the consortium under any law for the time being in force, in cash or otherwise, whether secured or unsecured, or assigned, or whether payable under a decree or order of any civil court or any arbitration award or otherwise or under a mortgage and subsisting on, and legally recoverable on, the date of the application 5[and includes any liability towards debt securities which remains unpaid in full or part after notice of ninety days served upon the borrower by the debenture trustee or any other authority in whose favour security interest is created for the benefit of holders of debt securities or;]]
5[(ga) "debt securities" means debt securities listed in accordance with regulations made by the Securities Exchange Board of India under the Securities and Exchange Board of India Act, 1992 (15 of 1992);]
(h) "financial institution" means---
(i) a public financial institution within the meaning of section 4A of the Companies Act, 1956 (1 of 1956);
6[(ia) the securitisation company or reconstruction company which has obtained a certificate of registration under sub-section (4) of section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002);]
5[(ib) a debenture trustee registered with the Board and appointed for secured debt securities;]
(ii) such other institution as the Central Government may, having regard to its business activity and the area of its operation in India, by notification, specify;
5[(ha) "financial lease" means a lease under a lease agreement of tangible asset, other than negotiable instrument or negotiable document, for transfer of lessor's right therein to the lessee for a certain time in consideration of payment of agreed amount periodically and where lessee becomes the owner of the such assets at the expiry of the term of lease or on payment of the agreed residual amount, as the case may be;]
(i) "notification" means a notification published in the Official Gazette;
(j) "prescribed" means prescribed by rules made under this Act;
2[(ja) "Presiding Officer" means the Presiding Officer of the Debts Recovery Tribunal appointed under sub-section (1) of section 4;]
5[(jb) "property" means---
(a) immovable property;
(b) movable property;
(c) any debt or any right to receive payment of money, whether secured or unsecured;
(d) receivables, whether existing or future;
(e) intangible assets, being know-how, patent, copyright, trade mark, licence, franchise or any other business or commercial right of similar nature, as may be prescribed by the Central Government in consultation with Reserve Bank;]
(k) "Recovery Officer" means a Recovery Officer appointed by the Central Government for each Tribunal under sub-section (1) of section 7;
(l) "Regional Rural Bank" means a Regional Rural Bank established under section 3 of the Regional Rural Banks Act, 1976 (21 of 1976);
5[(la) "secured creditor" shall have the meaning as assigned to it in clause (zd) of sub-section (1) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002);
(lb) "security interest" means mortgage, charge, hypothecation, assignment or any other right, title or interest of any kind whatsoever upon property, created in favour of any bank or financial institution and includes---
(a) such right, title or interest upon tangible asset, retained by the bank or financial institution as owner of the property, given on hire or financial lease or conditional sale which secures the obligation to pay any unpaid portion of the purchase price of the asset or an obligation incurred or any credit provided to enable the borrower to acquire the tangible asset; or
(b) such right, title or interest in any intangible asset or licence of any intangible asset, which secures the obligation to pay any unpaid portion of the purchase price of the intangible asset or the obligation incurred or any credit extended to enable the borrower to acquire the intangible asset or licence of intangible asset;]
(m) "State Bank of India" means the State Bank of India constituted under section 3 of the State Bank of India Act, 1955 (23 of 1955);
(n) "subsidiary bank" shall have the meaning assigned to it in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);
(o) "Tribunal" means the Tribunal established under sub-section (1) of section 3.
(a) "Appellate Tribunal" means an Appellate Tribunal established under sub-section (1) of section 8;
(b) "application" means an application made to a Tribunal under section 19;
(c) "appointed day", in relation to a Tribunal or an Appellate Tribunal, means the date on which such Tribunal is established under sub-section (1) of section 3 or, as the case may be, sub-section (1) of section 8;
(d) "bank" means---
(i) banking company;
(ii) a corresponding new bank;
(iii) State Bank of India;
(iv) a subsidiary bank; or
(v) a Regional Rural Bank;
1[(vi) a multi-State co-operative bank;]
(e) "banking company" shall have the meaning assigned to it in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
2[(ea) "Chairperson" means a Chairperson of an Appellate Tribunal appointed under section 9;]
(f) "corresponding new bank" shall have the meaning assigned to it in clause (da) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
3[(g) "debt" means any liability (inclusive of interest) which is claimed as due from any person 4[or a pooled investment vehicle as defined in clause (da) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956)] by a bank or a financial institution or by a consortium of banks or financial institutions during the course of any business activity undertaken by the bank or the financial institution or the consortium under any law for the time being in force, in cash or otherwise, whether secured or unsecured, or assigned, or whether payable under a decree or order of any civil court or any arbitration award or otherwise or under a mortgage and subsisting on, and legally recoverable on, the date of the application 5[and includes any liability towards debt securities which remains unpaid in full or part after notice of ninety days served upon the borrower by the debenture trustee or any other authority in whose favour security interest is created for the benefit of holders of debt securities or;]]
5[(ga) "debt securities" means debt securities listed in accordance with regulations made by the Securities Exchange Board of India under the Securities and Exchange Board of India Act, 1992 (15 of 1992);]
(h) "financial institution" means---
(i) a public financial institution within the meaning of section 4A of the Companies Act, 1956 (1 of 1956);
6[(ia) the securitisation company or reconstruction company which has obtained a certificate of registration under sub-section (4) of section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002);]
5[(ib) a debenture trustee registered with the Board and appointed for secured debt securities;]
(ii) such other institution as the Central Government may, having regard to its business activity and the area of its operation in India, by notification, specify;
5[(ha) "financial lease" means a lease under a lease agreement of tangible asset, other than negotiable instrument or negotiable document, for transfer of lessor's right therein to the lessee for a certain time in consideration of payment of agreed amount periodically and where lessee becomes the owner of the such assets at the expiry of the term of lease or on payment of the agreed residual amount, as the case may be;]
(i) "notification" means a notification published in the Official Gazette;
(j) "prescribed" means prescribed by rules made under this Act;
2[(ja) "Presiding Officer" means the Presiding Officer of the Debts Recovery Tribunal appointed under sub-section (1) of section 4;]
5[(jb) "property" means---
(a) immovable property;
(b) movable property;
(c) any debt or any right to receive payment of money, whether secured or unsecured;
(d) receivables, whether existing or future;
(e) intangible assets, being know-how, patent, copyright, trade mark, licence, franchise or any other business or commercial right of similar nature, as may be prescribed by the Central Government in consultation with Reserve Bank;]
(k) "Recovery Officer" means a Recovery Officer appointed by the Central Government for each Tribunal under sub-section (1) of section 7;
(l) "Regional Rural Bank" means a Regional Rural Bank established under section 3 of the Regional Rural Banks Act, 1976 (21 of 1976);
5[(la) "secured creditor" shall have the meaning as assigned to it in clause (zd) of sub-section (1) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002);
(lb) "security interest" means mortgage, charge, hypothecation, assignment or any other right, title or interest of any kind whatsoever upon property, created in favour of any bank or financial institution and includes---
(a) such right, title or interest upon tangible asset, retained by the bank or financial institution as owner of the property, given on hire or financial lease or conditional sale which secures the obligation to pay any unpaid portion of the purchase price of the asset or an obligation incurred or any credit provided to enable the borrower to acquire the tangible asset; or
(b) such right, title or interest in any intangible asset or licence of any intangible asset, which secures the obligation to pay any unpaid portion of the purchase price of the intangible asset or the obligation incurred or any credit extended to enable the borrower to acquire the intangible asset or licence of intangible asset;]
(m) "State Bank of India" means the State Bank of India constituted under section 3 of the State Bank of India Act, 1955 (23 of 1955);
(n) "subsidiary bank" shall have the meaning assigned to it in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);
(o) "Tribunal" means the Tribunal established under sub-section (1) of section 3.
1. Ins. by Act 1 of 2013, s. 12 (w.e.f. 15-1-2013).
2. Ins. by Act 1 of 2000, s. 3 (w.e.f. 17-1-2000).
3. Subs. by s. 3, ibid., for cl. (g) (w.e.f. 17-1-2000).
4. Ins. by Act 13 of 2021, s. 160 (w.e.f. 1-4-2021).
5. Ins. by Act 44 of 2016, s. 26 (w.e.f. 1-9-2016).
6. Ins. by Act 30 of 2004, s. 19 (w.e.f. 11-11-2004).
2. Ins. by Act 1 of 2000, s. 3 (w.e.f. 17-1-2000).
3. Subs. by s. 3, ibid., for cl. (g) (w.e.f. 17-1-2000).
4. Ins. by Act 13 of 2021, s. 160 (w.e.f. 1-4-2021).
5. Ins. by Act 44 of 2016, s. 26 (w.e.f. 1-9-2016).
6. Ins. by Act 30 of 2004, s. 19 (w.e.f. 11-11-2004).
Section 3 Establishment of Tribunal.
(1) The Central Government shall, by notification, establish one or more Tribunals, to be known as the Debts Recovery Tribunal, to exercise the jurisdiction, powers and authority conferred on such Tribunal by or under this Act.
1[(1A)The Central Government shall by notification establish such number of Debts Recovery Tribunals and its benches as it may consider necessary, to exercise the jurisdiction, powers and authority of the Adjudicating Authority conferred on such Tribunal by or under the Insolvency and Bankruptcy Code, 2016 (31 of 2016).]
(2) The Central Government shall also specify, in the notification referred to in sub-section (1), the areas within which the Tribunal may exercise jurisdiction for entertaining and deciding the applications filed before it.
1[(1A)The Central Government shall by notification establish such number of Debts Recovery Tribunals and its benches as it may consider necessary, to exercise the jurisdiction, powers and authority of the Adjudicating Authority conferred on such Tribunal by or under the Insolvency and Bankruptcy Code, 2016 (31 of 2016).]
(2) The Central Government shall also specify, in the notification referred to in sub-section (1), the areas within which the Tribunal may exercise jurisdiction for entertaining and deciding the applications filed before it.
1. Ins. by Act 31 of 2016, s. 249 and Sch. V (w.e.f. 1-12-2019).
Section 4 Composition of Tribunal. 4 docs
(1) A Tribunal shall consist of one person only (hereinafter referred to as the Presiding Officer) to be appointed, by notification, by the Central Government.
1[(2) Notwithstanding anything contained in sub-section (1), the Central Government may--
(a) authorise the Presiding Officer of any other Tribunal established under any other law for the time being in force to discharge the function of the Presiding Officer of a Debt Recovery Tribunal under this Act in addition to his being the Presiding Officer of that Tribunal; or
(b) authorise the judicial Member holding post as such in any other Tribunal, established under any other law for the time being in force, to discharge the functions of the Presiding Officer of Debts Recovery Tribunal under this Act, in addition to his being the judicial Member of that Tribunal.]
1[(2) Notwithstanding anything contained in sub-section (1), the Central Government may--
(a) authorise the Presiding Officer of any other Tribunal established under any other law for the time being in force to discharge the function of the Presiding Officer of a Debt Recovery Tribunal under this Act in addition to his being the Presiding Officer of that Tribunal; or
(b) authorise the judicial Member holding post as such in any other Tribunal, established under any other law for the time being in force, to discharge the functions of the Presiding Officer of Debts Recovery Tribunal under this Act, in addition to his being the judicial Member of that Tribunal.]
1 Subs. by Act 44 of 2016, s. 27, for sub-section (2) (w.e.f. 1-9-2016).
Section 5 Qualifications for appointment as Presiding Officer.
A person shall not be qualified for appointment as the Presiding Officer of a Tribunal unless he is, or has been, or is qualified to be, a District Judge.
Section 6 Term of office of Presiding Officer.
1[6. Term of office of Presiding Officer.--- The Presiding Officer of a Tribunal shall hold office for a term of five years from the date on which he enters upon his office and shall be eligible for reappointment:
Provided that no person shall hold office as the Presiding Officer of a Tribunal after he has attained the age of sixty-five years.]
Provided that no person shall hold office as the Presiding Officer of a Tribunal after he has attained the age of sixty-five years.]
1. Subs. by Act 44 of 2016, s. 28, for s. 6 (w.e.f. 1-9-2016).
Section 6A Qualifications, terms and conditions of service of Presiding Officer.
1[6A. Qualifications, terms and conditions of service of Presiding Officer. -- Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the Presiding Officer of the Tribunal appointed after the commencement of 2[the Tribunals Reforms Act, 2021, shall be governed by the provisions of Chapter II of the said Act]:
Provided that the Presiding Officer appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.]
Provided that the Presiding Officer appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.]
1. Ins. by Act 7 of 2017, s. 179 (w.e.f. 26-5-2017).
2. Subs. by Act 33 of 2021, s. 18, for “Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall be governed by the provisions of section 184 of that Act” (w.e.f. 4-4-2021).
2. Subs. by Act 33 of 2021, s. 18, for “Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall be governed by the provisions of section 184 of that Act” (w.e.f. 4-4-2021).
Section 7 Staff of Tribunal. 1 docs
(1) The Central Government shall provide the Tribunal 1[with one or more Recovery Officers] and such other officers and employees as that Government may think fit.
(2) 2[The Recovery Officers] and other officers and employees of a Tribunal shall discharge their functions under the general superintendence of the Presiding Officer.
(3) The salaries and allowances and other conditions of service of the 3[Recovery Officers] and other officers and employees of a Tribunal shall be such as may be prescribed.
(2) 2[The Recovery Officers] and other officers and employees of a Tribunal shall discharge their functions under the general superintendence of the Presiding Officer.
(3) The salaries and allowances and other conditions of service of the 3[Recovery Officers] and other officers and employees of a Tribunal shall be such as may be prescribed.
1 Subs. by Act 1 of 2000, s. 4, for "with a Recovery Officer" (w.e.f. 17-1-2000).
2 Subs. by s. 4, ibid., for "The Recovery Officer" (w.e.f. 17-1-2000).
3 Subs. by s. 4, ibid., for "Recovery Officer" (w.e.f. 17-1-2000).
2 Subs. by s. 4, ibid., for "The Recovery Officer" (w.e.f. 17-1-2000).
3 Subs. by s. 4, ibid., for "Recovery Officer" (w.e.f. 17-1-2000).
Section 8 Establishment of Appellate Tribunal.
(1) The Central Government shall, by notification, establish one or more Appellate Tribunals, to be known as the Debts Recovery Appellate Tribunal, to exercise the jurisdiction, powers and authority conferred on such Tribunal by or under this Act:
1[Provided that the Central Government may authorise the Chairperson of any other Appellate Tribunal, established under any other law for the time being in force, to discharge the functions of the Chairperson of the Debts Recovery Appellate Tribunal under this Act in addition to his being the Chairperson of that Appellate Tribunal.]
2[(1A) The Central Government shall, by notification, establish such number of Debt Recovery Appellate Tribunals to exercise jurisdiction, powers and authority to entertain appeal against the order made by the Adjudicating Authority under Part III of the Insolvency and Bankruptcy Code, 2016 (31 of 2016).]
(2) The Central Government shall also specify in the notification, referred to in sub-section (1) the Tribunals in relation to which the Appellate Tribunal may exercise jurisdiction.
3[(3) Notwithstanding anything contained in sub-sections (1) and (2), the Central Government may authorise the Chairperson of one Appellate Tribunal to discharge also the functions of the Chairperson of other Appellate Tribunal.]
1[Provided that the Central Government may authorise the Chairperson of any other Appellate Tribunal, established under any other law for the time being in force, to discharge the functions of the Chairperson of the Debts Recovery Appellate Tribunal under this Act in addition to his being the Chairperson of that Appellate Tribunal.]
2[(1A) The Central Government shall, by notification, establish such number of Debt Recovery Appellate Tribunals to exercise jurisdiction, powers and authority to entertain appeal against the order made by the Adjudicating Authority under Part III of the Insolvency and Bankruptcy Code, 2016 (31 of 2016).]
(2) The Central Government shall also specify in the notification, referred to in sub-section (1) the Tribunals in relation to which the Appellate Tribunal may exercise jurisdiction.
3[(3) Notwithstanding anything contained in sub-sections (1) and (2), the Central Government may authorise the Chairperson of one Appellate Tribunal to discharge also the functions of the Chairperson of other Appellate Tribunal.]
1 Ins. by Act 44 of 2016, s. 29 (w.e.f. 1-9-2016).
2 Ins. by Act 31 of 2016, s. 249 and Sch. V (w.e.f. 1-12-2019).
3 Ins. by Act 1 of 2000, s. 5 (w.e.f. 17-1-2000).
2 Ins. by Act 31 of 2016, s. 249 and Sch. V (w.e.f. 1-12-2019).
3 Ins. by Act 1 of 2000, s. 5 (w.e.f. 17-1-2000).
Section 9 Composition of Appellate Tribunal. 3 docs
An Appellate Tribunal shall consist of one person only (hereinafter referred to as 1[the Chairperson of the Appellate Tribunal]) to be appointed, by notification, by the Central Government.
1. Subs. by Act 1 of 2000 s. 2, for "the Presiding Officer of the Appellate Tribunal" (w.e.f. 17-1-2000).
Section 10 Qualifications for appointment as Chairperson of the Appellate Tribunal.
10. Qualifications for appointment as 1[the Chairperson of the Appellate Tribunal].-- A person shall not be qualified for appointment as 2[the Chairperson of an Appellate Tribunal] unless he--
(a) is, or has been, or is qualified to be, a Judge of a High Court; or
(b) has been a member of the Indian Legal Service and has held a post in Grade I of that service for at least three years; or
(c) has held office as the Presiding Officer of a Tribunal for at least three years.
(a) is, or has been, or is qualified to be, a Judge of a High Court; or
(b) has been a member of the Indian Legal Service and has held a post in Grade I of that service for at least three years; or
(c) has held office as the Presiding Officer of a Tribunal for at least three years.
1. Subs. by Act 1 of 2000 s. 2, for "the Presiding Officer of the Appellate Tribunal" (w.e.f. 17-1-2000).
2. Subs. by Act 1 of 2000 s. 2, for "the Presiding Officer of an Appellate Tribunal " (w.e.f. 17-1-2000).
2. Subs. by Act 1 of 2000 s. 2, for "the Presiding Officer of an Appellate Tribunal " (w.e.f. 17-1-2000).
Section 11 Term of office of Chairperson of Appellate Tribunal.
1[11. Term of office of Chairperson of Appellate Tribunal.-- The Chairperson of an Appellate Tribunal shall hold office for a term of five years from the date on which he enters upon his office and shall be eligible for reappointment:
Provided that no person shall hold office as the Chairperson of a Appellate Tribunal after he has attained the age of seventy years.]
Provided that no person shall hold office as the Chairperson of a Appellate Tribunal after he has attained the age of seventy years.]
1. Subs. by Act 44 of 2016, s. 30, for s. 11 (w.e.f. 1-9-2016).
Section 12 Staff of the Appellate Tribunal. 1 docs
The provisions of section 7 (except those relating to Recovery Officer) shall, so far as may be, apply to an Appellate Tribunal as they apply to a Tribunal and accordingly references in that section to "Tribunal" shall be construed as references to "Appellate Tribunal" and references to "Recovery Officer" shall be deemed to have been omitted.
Section 13 Salary and allowances and other terms and conditions of service of Presiding Officers. 4 docs
The salary and allowances payable to, and the other terms and conditions of service (including pension, gratuity and other retirement benefits) of, 1[the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal] shall be such as may be prescribed:
Provided that neither the salary and allowances nor the other terms and conditions of service of 2[the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal shall be varied to his] disadvantage after appointment.
Provided that neither the salary and allowances nor the other terms and conditions of service of 2[the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal shall be varied to his] disadvantage after appointment.
1 Subs. by Act 1 of 2000, s. 2, for "the Presiding Officer of a Tribunal or an Appellate Tribunal" (w.e.f. 17-1-2000).
2 Subs. by s. 6, ibid., for "the said Presiding Officers shall be varied to their" (w.e.f. 17-1-2000).
2 Subs. by s. 6, ibid., for "the said Presiding Officers shall be varied to their" (w.e.f. 17-1-2000).
Section 14 Filling up of vacancies.
If, for any reason other than temporary absence, any vacancy occurs in the office of 1[the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal], then the Central Government shall appoint another person in accordance with the provisions of this Act to fill the vacancy and the proceedings may be continued before the Tribunal or the Appellate Tribunal from the stage at which the vacancy is filled.
1. Subs. by Act 1 of 2000, s. 2, for "the Presiding Officer of a Tribunal or an Appellate Tribunal" (w.e.f. 17-1-2000).
Section 15 Resignation and removal. 2 docs
(1) 1[The Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal] may, by notice in writing under his hand addressed to the Central Government, resign his office:
Provided that 2[the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal] shall, shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest.
(2) 1[The Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal] shall not be removed from his office except by an order made by the Central Government on the ground of proved misbehaviour or incapacity after inquiry,--
(a) in the case of the Presiding Officer of a Tribunal, made by a Judge of a High Court;
(b) in the case of 3[the Chairperson of an Appellate Tribunal], made by a Judge of the Supreme Court, in which 4[the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal] has been informed of the charges against him and given a reasonable opportunity of being heard in respect of these charges:
5[Provided that the Central Government, during the pendency of the inquiry against the Presiding Officer or a Chairperson, as the case may be, may, after consulting the Chairperson of the Selection Committee constituted for selection of Presiding Officer or Chairperson, pass an order suspending the Presiding Officer or the Chairperson, if it is satisfied that he should cease to discharge his functions as a Presiding Officer or Chairperson, as the case may be.]
(3) The Central Government may, by rules, regulate the procedure for the investigation of misbehaviour or incapacity of 6[the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal.]
Provided that 2[the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal] shall, shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest.
(2) 1[The Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal] shall not be removed from his office except by an order made by the Central Government on the ground of proved misbehaviour or incapacity after inquiry,--
(a) in the case of the Presiding Officer of a Tribunal, made by a Judge of a High Court;
(b) in the case of 3[the Chairperson of an Appellate Tribunal], made by a Judge of the Supreme Court, in which 4[the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal] has been informed of the charges against him and given a reasonable opportunity of being heard in respect of these charges:
5[Provided that the Central Government, during the pendency of the inquiry against the Presiding Officer or a Chairperson, as the case may be, may, after consulting the Chairperson of the Selection Committee constituted for selection of Presiding Officer or Chairperson, pass an order suspending the Presiding Officer or the Chairperson, if it is satisfied that he should cease to discharge his functions as a Presiding Officer or Chairperson, as the case may be.]
(3) The Central Government may, by rules, regulate the procedure for the investigation of misbehaviour or incapacity of 6[the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal.]
1. Subs. by Act 1 of 2000, s. 2, "for the Presiding Officer of a Tribunal or an Appellate Tribunal " (w.e.f. 17-1-2000).
2. Subs. by s. 7, ibid., for "the said Presiding Officer" (w.e.f. 17-1-2000).
3. Subs. by s. 2, ibid., for "the Presiding Officer of an Appellate Tribunal " (w.e.f. 17-1-2000).
4 Subs. by s. 7, ibid., for "the Presiding Officer concerned" (w.e.f. 17-1-2000).
5 Ins. by Act 1 of 2013, s. 13 (w.e.f. 15-1-2013).
6 Subs. by Act 1 of 2000, s. 7, for "the aforesaid Presiding Officer" (w.e.f. 17-1-2000).
2. Subs. by s. 7, ibid., for "the said Presiding Officer" (w.e.f. 17-1-2000).
3. Subs. by s. 2, ibid., for "the Presiding Officer of an Appellate Tribunal " (w.e.f. 17-1-2000).
4 Subs. by s. 7, ibid., for "the Presiding Officer concerned" (w.e.f. 17-1-2000).
5 Ins. by Act 1 of 2013, s. 13 (w.e.f. 15-1-2013).
6 Subs. by Act 1 of 2000, s. 7, for "the aforesaid Presiding Officer" (w.e.f. 17-1-2000).
Section 15A Qualifications, terms and conditions of service of Chairperson.
1[15A. Qualifications, terms and conditions of service of Chairperson.-- Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the terms and conditions of service of the Chairperson of the Appellate Tribunal appointed after the commencement of 2[the Tribunals Reforms Act, 2021, shall be governed by the provisions of Chapter II of the said Act]:
Provided that the Chairperson appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.]
Provided that the Chairperson appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.]
1. Ins. by Act 7 of 2017, s. 179 (w.e.f. 26-5-2017).
2.Subs. by Act 33 of 2021, s. 18, for "Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall be governed by the provisions of section 184 of that Act" (w.e.f. 4-4-2021).
2.Subs. by Act 33 of 2021, s. 18, for "Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall be governed by the provisions of section 184 of that Act" (w.e.f. 4-4-2021).
Section 16 Orders constituting Tribunal or an Appellate Tribunal to be final and not to invalidate its proceedings.
No order of the Central Government appointing any person as 1[the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal] shall be called in question in any manner, and no act or proceeding before a Tribunal or an Appellate Tribunal shall be called in question in any manner on the ground merely of any defect in the constitution of a Tribunal or an Appellate Tribunal.
1 Subs. by Act 1 of 2000, s. 2, for "the Presiding Officer of a Tribunal or an Appellate Tribunal" (w.e.f. 17-1-2000).
Section 17 Jurisdiction, powers and authority of Tribunals.
(1) A Tribunal shall exercise, on and from the appointed day, the jurisdiction, powers and authority to entertain and decide applications from the banks and financial institutions for recovery of debts due to such banks and financial institutions.
1[(1A) Without prejudice to sub-section (1),---
(a) the Tribunal shall exercise, on and from the date to be appointed by the Central Government, the jurisdiction, powers and authority to entertain and decide applications under Part III of Insolvency and Bankruptcy Code, 2016 (31 of 2016).
(b) the Tribunal shall have circuit sittings in all district headquarters.]
(2) An Appellate Tribunal shall exercise, on and from the appointed day, the jurisdiction, powers and authority to entertain appeals against any order made, or deemed to have been made, by a Tribunal under this Act.
1[(2A) Without prejudice to sub-section (2), the Appellate Tribunal shall exercise, on and from the date to be appointed by the Central Government, the jurisdiction, powers and authority to entertain appeals against the order made by the Adjudicating Authority under Part III of the Insolvency and Bankruptcy Code, 2016 (31 of 2016)).]
1[(1A) Without prejudice to sub-section (1),---
(a) the Tribunal shall exercise, on and from the date to be appointed by the Central Government, the jurisdiction, powers and authority to entertain and decide applications under Part III of Insolvency and Bankruptcy Code, 2016 (31 of 2016).
(b) the Tribunal shall have circuit sittings in all district headquarters.]
(2) An Appellate Tribunal shall exercise, on and from the appointed day, the jurisdiction, powers and authority to entertain appeals against any order made, or deemed to have been made, by a Tribunal under this Act.
1[(2A) Without prejudice to sub-section (2), the Appellate Tribunal shall exercise, on and from the date to be appointed by the Central Government, the jurisdiction, powers and authority to entertain appeals against the order made by the Adjudicating Authority under Part III of the Insolvency and Bankruptcy Code, 2016 (31 of 2016)).]
1. Ins. by Act 31 of 2016, s. 249 and Sch. V (w.e.f. 1-12-2019).
Section 17A Power of Chairperson of Appellate Tribunal.
1[17A. Power of Chairperson of Appellate Tribunal.-- (1) The Chairperson of an Appellate Tribunal shall exercise general power of superintendence and control over the Tribunals under his jurisdiction including the power of appraising the work and recording the annual confidential reports of Presiding Officers.
2[(1A) For the purpose of exercise of general powers of superintendence and control over Tribunals under sub-section (1), the Chairperson may--
(i) direct the Tribunals to furnish, in such form, at such intervals and within such time, information relating to pending cases both under this Act and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002), or under any other law for the time being in force, number of cases disposed of, number of new cases filed and such other information as may be considered necessary by the Chairperson;
(ii) convene meetings of the Presiding Officers of Tribunals periodically to review their performance.
(1B) Where on assessment of the performance of any Presiding Officer of the Tribunal or otherwise, the Chairperson is of the opinion that an inquiry is required to be initiated against such Presiding Officer for misbehaviour or incapacity, he shall submit a report to the Central Government recommending action against such Presiding Officer, if any, under section 15, and for reasons to be recorded in writing for the same.]
(2) The Chairperson of an Appellate Tribunal having jurisdiction over the Tribunals may, on the application of any of the parties or on his own motion after notice to the parties and after hearing them, transfer any case from one Tribunal for disposal to any other Tribunal.]
2[(1A) For the purpose of exercise of general powers of superintendence and control over Tribunals under sub-section (1), the Chairperson may--
(i) direct the Tribunals to furnish, in such form, at such intervals and within such time, information relating to pending cases both under this Act and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002), or under any other law for the time being in force, number of cases disposed of, number of new cases filed and such other information as may be considered necessary by the Chairperson;
(ii) convene meetings of the Presiding Officers of Tribunals periodically to review their performance.
(1B) Where on assessment of the performance of any Presiding Officer of the Tribunal or otherwise, the Chairperson is of the opinion that an inquiry is required to be initiated against such Presiding Officer for misbehaviour or incapacity, he shall submit a report to the Central Government recommending action against such Presiding Officer, if any, under section 15, and for reasons to be recorded in writing for the same.]
(2) The Chairperson of an Appellate Tribunal having jurisdiction over the Tribunals may, on the application of any of the parties or on his own motion after notice to the parties and after hearing them, transfer any case from one Tribunal for disposal to any other Tribunal.]
1 Ins. by Act 1 of 2000, s. 8 (w.e.f. 17-1-2000).
2 Ins. by Act 44 of 2016, s. 31 (w.e.f. 1-9-2016)
2 Ins. by Act 44 of 2016, s. 31 (w.e.f. 1-9-2016)