FILING APPEAL BEFORE DEBTS RECOVERY APPELLATE TRIBUNAL

Appeal before Appellate Tribunal

Section 20 of the Recovery of Debts and Bankruptcy Act, (‘Act’ for short) provides for filing appeal against the order of Debts Recovery Tribunal. The said section provides that any person, being aggrieved against the order of Debts Recovery Tribunal may file an appeal before the ‘Debts Recovery Appellate Tribunal (‘Appellate Tribunal’ for short) having jurisdiction in that matter. There are only 5 appellate Tribunals all over India.

The appeal cannot be filed before the Appellate Tribunal with the consent of the parties. Every appeal against the order of Debts Recovery Tribunal shall be filed within 30 days from the date of receipt of the order by the appellant. The Appellate Tribunal may entertain an appeal after the expiry of the said period of 30 days if it is satisfied that there was sufficient cause for not filing it within that period.

Language of the Appellate Tribunal

The proceeding of the Appellate Tribunal shall be conducted in English or Hindi. Any appeal, reference, application, representation, document or other matters contained in any language other than English or Hindi, shall be accepted by the Appellate Tribunal, unless the same is accompanied by a true copy of translation thereof in English or Hindi.

Procedure for filing appeal before Appellate Tribunal

The procedure for filing appeal before the Appellate Tribunal is as detailed below-

• A memorandum of appeal shall be presented in the prescribed form rules by the appellant either in person to the Registrar of the Appellate Tribunal within whose jurisdiction his case falls.
• The appeal may also be filed by sending the memorandum of the appeal to the Registrar concerned by speed post.
• An appeal sent by post shall be deemed to have been presented to the Registrar on the day on which it is received in the office of the Registrar.
• If the appellant is a bank or a financial institution a memorandum of appeal may be preferred-

• by one or more legal practitioners authorised by such banks of financial institution; or
• by any of the officers of such bank of financial institution to acts as presenting officers; and
• every person so authorised may present the appeal before the Appellate Tribunal

• The appeal shall be presented in four sets in a paper book along with an empty file size envelope bearing full address of the respondent and where the number of respondents are more than one, the sufficient number of extra paper books together with empty file size envelopes bearing full address of each respondent shall be furnished by the appellant.
• A memorandum of appeal shall not seek relief or reliefs based on more than a single case of action in one single memorandum of appeal unless the reliefs prayed for are consequential to one another.

Fee

The amount of fee payable in respect of appeal shall be as detailed below-

• If the amount of debt is less than Rs.10 lakhs – the fee payable is Rs.12,000/-;
• If the amount of debt is more than Rs.10 lakhs but less than Rs.30 lakhs, the fee payable is Rs.20,000/-;
• If the amount of debt is more than 30 lakhs then the fee payable is Rs.30 lakhs.

Deposit of amount due

If an appeal is preferred by a person, such appeal shall not be entertained by the Appellate Tribunal unless such person has deposited with the Appellate Tribunal 75% of the amount of debt so due from him as determined by the Tribunal. The Appellate Tribunal may, for reasons to be recorded in writing, waive or reduce the amount to be deposited.

Contents of Memorandum of appeal

Every memorandum of appeal shall set forth concisely under distinct heads, the grounds of such appeal without any argument or narrative, and such grounds shall be numbered consecutively and shall be typed in double line space on one side of the paper. Interim order, if any required, may be included in the memorandum of appeal. It is not required to file a separate application for the grant of interim order.

Documents

The following documents shall be attached along with the Memorandum of Appeal-

• Every memorandum of appeal shall be in triplicate.
• It shall be accompanied with 2 copies (at least one of which shall be a certified copy) of the order of the Presiding Officer of Debts Recovery Tribunal or order made by the Recovery Officer under section 30 of the Act, as the case may be, against which the appeal is filed.
• If the appeal is filed by an agent of the appellants, the documents authorising him to act as such agent shall be appended to the appeal.
• If the appeal is filed by a legal practitioner, Vakalat shall be filed.
• If the appeal is filed by any of the officers of the appellant to act as presenting officer before the Appellate Tribunal, the documents authorising him to act as the presenting officer shall be appended to the memorandum of appeal.

Endorsement

A copy of the memorandum of appeal and the paper book shall be served on each of the respondents by the Registrar by registered post.

Reply

The respondent may file 4 complete sets containing the reply to the appeal along with documents in a paper book form with the registry within 1 month of the service of the notice on him of the filing of the memorandum of appeal.. The respondent shall forward one copy of the reply to the appeal along with documents to the appellant. The Appellate Tribunal may, in its discretion on application by the respondent, allow the filing of reply, after the expiry of the period referred to therein.

Other respondents

In an appeal by the bank or a financial institution the other party shall be made the respondent to the appeal. In an appeal by a person other than a bank or financial institution the bank or financial institution who has to recover any debt from any person before the Tribunal against those orders the appeal has been preferred shall be made the respondent to the appeal.

Hearing

The Appellate Tribunal shall notify the parties the date and place of hearing of the appal in such a manner as the presiding officer may by general or special order direct.

Powers of the Appellate Tribunal

The Appellate Tribunal shall not be bound the procedure laid down by the Code of Civil Procedure, 1908, but shall be guided by the principles of natural justice and, subject to the other provisions of this Act and of any rules, the Appellate Tribunal shall have powers to regulate its own procedure including the places at which they shall have their sittings.

The Appellate Tribunal shall have, for the purposes of discharging their functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, while trying a suit, in respect of the following matters, namely:—

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) requiring the discovery and production of documents;

(c) receiving evidence on affidavits;

(d) issuing commissions for the examination of witnesses or documents;

(e) reviewing its decisions;

(f) dismissing an application for default or deciding it ex parte;

(g) setting aside any order of dismissal of any application for default or any order passed by it ex parte;

(h) any other matter which may be prescribed.

Order

Every order of the Appellate Tribunal shall be in writing and shall be signed and dated by the Presiding Officer of the Appellate Tribunal. Every order passed on an appeal shall be communicated to the appellant and to the respondent and to the Tribunal concerned either in person or by registered post free of cost.

The Appellate Tribunal may make such orders or give such directions as may be necessary or expedient to give effect to its orders or to prevent abuse of its process or to secure the ends of justice.