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This is an archive article published on February 11, 2022

Bombay HC warns of summoning MoF Secretary if no clarity on appointment for DRAT-M chief

DRTs are constituted under the Union Finance Ministry to enable banks and other financial institutions to recover debt from borrowers in a speedy manner.

A division bench of Chief Justice Dipankar Datta and Justice Makarand S Karnik was hearing pleas seeking direction to the Centre to appoint a chairperson of DRAT, Mumbai. A division bench of Chief Justice Dipankar Datta and Justice Makarand S Karnik was hearing pleas seeking direction to the Centre to appoint a chairperson of DRAT, Mumbai.

OBSERVING THAT it cannot “allow justice to become a casualty,” the Bombay High Court on Thursday warned the Union Ministry of Finance that if it fails to inform the court of the date of appointment of the chairperson of Debt Recovery Appellate Tribunal (DRAT), Mumbai, within two weeks, the HC will be constrained to summon Secretary, MoF and appear before it to respond to the delay in appointments.

DRTs are constituted under the Union Finance Ministry to enable banks and other financial institutions to recover debt from borrowers in a speedy manner.

A division bench of Chief Justice Dipankar Datta and Justice Makarand S Karnik was hearing pleas seeking direction to the Centre to appoint a chairperson of DRAT, Mumbai. The court has been passing directions to aid litigants, who are left without an appellate panel due to vacancies in DRAT making it non-functional.

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On Thursday, Additional Solicitor General Anil Singh for the Union government submitted a status report signed by AK Dogra, Director, Department of Financial Services (DFS), Ministry of Finance (MoF), which stated that the recommendation of search and selection committee headed by a judge of the Supreme Court has on December 20, 2021, forwarded recommendations to DFS, which included names for appointment of chairpersons of various DRATs including DRAT, Mumbai.

The bench observed, “Perusal of status report does not reveal any roadmap, in-fact, we are left to wonder if Director, DFS understood what we meant by roadmap in light of February 4 order….”

ASG Singh prayed for “one last opportunity” to come up with “positive development” and submit a “roadmap”, which the HC accepted. It noted, “We are adjourning the hearing on the clear understanding that if we are not told of any positive outcome by February 21, we would be constrained to call upon the Secretary, MoF and responsible officers attached to DoPT for facilitating the appointment.”

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