There
are debt recovery tribunals in india constituted by the Act
of parliament in the 1993, for recovery of debt due to
banks
and financial institution. The act is used by the banks and financial
institution, when they have to recover the debt from a person or
group. The banks and institutions has to file the original
application to the tribunals against such persons.
The
provisions
of the debt recovery are
used by the Best
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when the debt due to banks and institutions are more than 10 lacs. If
the amount is less than 10 lacs, then the government, the central
government has to specify by notifications.
The
provision worked fine and helped the banks and other financial
institution to recover the large part of their debt, which was non
-performing assets. But the process slowed down when the banks have
to take the case against powerful borrowers. These powerful borrowers
were able to use the services of the lawyers to slow down the
recovery cases, on the ground that
their claims
are pending against the lenders, and if there is any action from the
tribunals then they may not be able to recover their money.
To
help the banks and lenders , the new SRFAESI act helped them to put
the property of such person, who are unwilling to give the debt
back, on auction or take into their possession the assets of such
persons. The banks and institution can do this by just giving a
notice and without having to go through the proceeding
of the court. The services of experienced lawyers often, helps the
person who is
unable to give back money or do not want to give back money, to
banks. The law helped
the banks and other such institutions
to recover the substantial
part of their debt back. But still there were some powerful
individuals
and corporates, who still managed to find some loopholes in this act
also. The supreme court then struck down the
certain
provision of the law and allowed the borrowers an adjudicatory forum
before the take over of their properties by banks and institutions.
The
experienced lawyer
Best
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will
make sure that the client never goes through harassment during the
recovery process and bail services are
rendered effectively to help the client.
