The Supreme Court criticized the Finance Ministry for diverting Debt Recovery Tribunals (DRTs) from their primary role of resolving cases to focus on data collection. The Court mandated the establishment of a Standard Operating Procedure to ensure the efficient functioning of DRTs and requested detailed staffing information by January 2.
The Supreme Court on Monday (18th Nov) has issued a notice to the Centre regarding the non-appointment of chairpersons in 11 Debt Recovery Tribunals (DRTs), seeking a response within five weeks. The case highlights delays affecting efficient debt recovery, emphasizing the right to speedy justice and requesting interim measures to ensure tribunal functionality while vacancies persist.
Today(on 23rd July), Finance Minister Nirmala Sitharaman announced plans to revise the Insolvency and Bankruptcy Code (IBC) to strengthen NCLT tribunals and improve asset recovery. The changes aim to enhance the efficiency of handling stressed assets. Additional tribunals for the NCLT and an integrated technology platform are part of the proposed reforms.
