Section 18 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
- (1)Any person aggrieved, by any order made by the Debts Recovery Tribunal 1[under section 17, may prefer an appeal along with such fee, as may be prescribed]to the Appellate Tribunal within thirty days from the date of receipt of the order of Debts Recovery Tribunal. 2[Provided that different fees may be prescribed for filing an appeal by the borrower or by the person other than the borrower:] 3[Provided further that no appeal shall be entertained unless the borrower has deposited with the Appellate Tribunal fifty per cent. of the amount of debt due from him, as claimed by the secured creditors or determined by the Debts Recovery Tribunal, whichever is less: Provided also that the Appellate Tribunal may, for the reasons to be recorded in writing, reduce the amount to not less than twenty-five per cent. of debt referred to in the second proviso.]
- (2)Save as otherwise provided in this Act, the Appellate Tribunal shall, as far as may be, dispose of the appeal in accordance with the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993) and rules made thereunder.
Summary
- Anyone unhappy with a decision made by the Debts Recovery Tribunal can appeal to the Appellate Tribunal.
- The appeal must be filed within thirty days from the date the person receives the order from the Debts Recovery Tribunal, and an appeal fee must be paid.
- To file an appeal, a borrower must deposit fifty percent of the debt amount claimed by the creditor or determined by the Tribunal, whichever is lower.
- The Appellate Tribunal has the power to lower this mandatory deposit to twenty-five percent, but they must write down their reasons for doing so.
Practical examples
FAQ
1. What is the deadline to appeal a decision from the Debts Recovery Tribunal?
You must appeal within thirty days of receiving the order.
2. Do I have to pay the whole debt before I can appeal?
No, but a borrower must deposit fifty percent of the debt claimed or determined to have the appeal entertained.
3. Can the fifty percent deposit requirement be lowered?
Yes, the Appellate Tribunal can reduce the deposit to not less than twenty-five percent of the debt, provided they record the reasons in writing.
Test yourself
Q1.Under Section 18 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, what is the time limit for filing an appeal to the Appellate Tribunal?
Q2.According to Section 18 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, what is the standard deposit required from a borrower to entertain an appeal?
Q3.Under Section 18 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, what is the lowest percentage the Appellate Tribunal can reduce the required deposit to?
Q4.Section 18 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 governs appeals to the Appellate Tribunal. These appeals are specifically filed against orders made by the Debts Recovery Tribunal under which other section?