Natural justice before DRT permits curing procedural defects in an application where no real prejudice to defence is shown.

A defendant before the Debt Recovery Tribunal may object to defects in an original application after registration, but such objection matters only if the alleged defect prejudices the defence. Section 22 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1995 allows the Tribunal to regulate procedure on principles of natural justice, and that power includes permitting the applicant to cure procedural irregularities. Where the defect does not cause real prejudice, the Tribunal may allow correction rather than reject the application. The alleged absence of translated copies of Telugu documents did not justify interference because translations were to be supplied at trial.

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Issues: Whether a defendant in an original application before the Debt Recovery Tribunal can object to alleged defects in the application after registration, and whether the Tribunal can permit the applicant to cure such defects in the interests of natural justice.

Analysis: Section 22 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1995 empowers the Tribunal to regulate its own procedure on principles of natural justice, subject to the Act and the rules. The scrutiny rules for registration are intended to ensure proper processing of the application, but even if the application is assumed to contain defects, the defendant's grievance is only relevant where the defect prejudices the defence. In such a situation, the Tribunal is not powerless to permit correction of the defect, because justice between the parties requires that the applicant be given an opportunity to cure an irregularity that may otherwise hinder the defence. The alleged absence of translated copies of Telugu documents did not justify interference where the counter affidavit stated that translations would be furnished at trial.

Conclusion: The defendant could raise the objection, but the Tribunal was entitled to allow cure of the defect and no interference was called for.

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