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Central Acts of India prepared by Law Firm in India
THE RECOVERY OF DEBTS DUE TO BANKS AND FINANCIAL INSTITUTIONS
ACT, 1993
NO. 51 OF 1993
[27th August, 1993.
An Act to provide for the establishment of Tribunals for expeditious
adjudication and recovery of debts due to banks and financial
institutions and for matters connected therewith or incidental
thereto.
BE it enacted by Parliament in the Forty-fourth Year of the
Republic of India as follows:-
CHAP
PRELIMINARY
CHAPTER I
PRELIMINARY
1.
Short title, extent, commencement and application.
1. Short title, extent, commencement and application. (1) This
Act may be called the Recovery of Debts Due to Banks and Financial
Institutions Act, 1993.
(2) It extends to the whole of India except the State of Jammu
and Kashmir.
(3) It shall be deemed to have come into force on the 24th day of
June, 1993.
(4) The provisions of this Act shall not apply where the amount
of debt due to any bank or financial institution or to a consortium of
banks or financial institutions is less than ten lakh rupees or such
other amount, being not less than one lakh rupees, as the Central
Government may, by notification, specify.
2
2.
Definitions.
2. Definitions. In this Act, unless the context otherwise
requires,--
(a) "Appellate Tribunal" means an Appellate Tribunal esta-
blished under sub-section (1) of section 8;
(b) "application" means an application made to a Tribunal
under section 19;
(c) "appointed day", in relation to a Tribunal or an
Appellate Tribunal, means the date on which such Tribunal is
established under sub-section (1) of section 3 or, as the
case may be, sub-section (1) of section 8;
(d) "bank" means-
(i) a banking company;
(ii) a corresponding new bank;
(iii) State Bank of India;
(iv) a subsidiary bank; or
(v) a Regional Rural Bank;
(e) "banking company" shall have the meaning assigned to it in
clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of
1949);
(f) "corresponding new bank" shall have the meaning assigned to
it in clause (da) of section 5 of the Banking Regulation Act, 1949
(10 of 1949);
(g) "debt" means any liability (inclusive of interest) which is
alleged as due from any person by a bank or a financial institution
or by a consortium of banks or financial institutions during the
course of any business activity undertaken by the bank or the
financial institution or the consortium under any law for the time
being in force, in cash or otherwise, whether secured or unsecured, or
whether payable under a decree or order of any civil court or
otherwise and subsisting on, and legally recoverable on, the date of
the application;
(h) "financial institution,, means-
(i) a public financial institution within the meaning of
section 4A of the Companies Act, 1956 (1 of 1956);
(ii) such other institution as the Central Government may,
having regard to its business activity and the area of its
operation in India, by notification, specify;
(i) "notification" means a notification published in the
Official Gazette;
(j) "prescribed" means prescribed by rules made under this
Act;
(k) "Recovery Officer" means a Recovery Officer appointed
by the Central Government for each Tribunal under sub-section
(1) of section 7;
(l) "Regional Rural Bank" means a Regional Rural Bank
established under section 3 of the Regional Rural Banks Act ,
1976 (21 of 1976);
3
(m) "State Bank of India" means the State Bank of India
constituted under section 3 of the State Bank of India Act,
1955 (23 of 1955);
(n) "subsidiary bank" shall have the meaning assigned to It
in clause (k) of section 2 of the State Bank of India
(Subsidiary Banks) Act, 1959 (38 of 1959);
(o) "Tribunal" means the Tribunal established under sub-
section (1) of section 3.
CHAP
ESTABLISHMENT OF TRIBUNAL AND APPELLATE TRIBUNAL
CHAPTER II
ESTABLISHMENT OF TRIBUNAL AND APPELLATE TRIBUNAL
3.
Establishment of Tribunal.
3. Establishment of Tribunal. (1) The Central Government shall
by notification, establish one or more Tribunals, to be known as the
Debts Recovery Tribunal, to exercise the jurisdiction; powers and
authority conferred on such Tribunal by or under this Act.
(2) The Central Government shall also specify, in the
notification referred to in sub-section (1), the areas within which
the Tribunal may exercise jurisdiction for entertaining and deciding
the applications filed before it
4.
Composition of Tribunal.
4. Composition of Tribunal. (1) A Tribunal shall consist of one
person only (hereinafter referred to as the Presiding Officer) to be
appointed, by notification, by the Central Government.
(2) Notwithstanding anything contained in sub-section (1), the
Central Government may authorise the Presiding Officer of one Tribunal
to discharge also the functions of the Presiding Officer of another
Tribunal.
5.
Qualifications for appointment as Presiding Officer.
5. Qualifications for appointment as Presiding Officer. A
person shall not be qualified for appointment as the Presiding Officer
of a Tribunal unless he is, or has been, or is qualified to be, a
District Judge.
6.
Terms of office.
6. Terms of office. The Presiding Officer of a Tribunal shall
hold office for a term of five years from the date on which he enters
upon his office or until he attains the age of 1*[sixty-two years],
whichever is earlier.
7.
Staff of Tribunal.
7. Staff of Tribunal. (1) The Central Government shall provide
the Tribunal with a Recovery Officer and such other officers and
employees as that Government may think fit.
(2) The Recovery Officer and other officers and employees of a
Tribunal shall discharge their functions under the general superinten-
dence of the Presiding Officer.
(3) The salaries and allowances and other conditions of service
of the Recovery Officer and other officers and employees of a Tribunal
shall be such as may be prescribed.
8.
Establishment of Appellate Tribunal.
8. Establishment of Appellate Tribunal. (1) The Central
Government shall, by notification, establish one or more Appellate
Tribunals, to be known as the Debts Recovery Appellate Tribunal, to
exercise the jurisdiction, powers and authority conferred on such
Tribunal by or under this Act.
1 Subs. by Act 28 of 1995, s. 2.
4
(2) The Central Government shall also specify in the
notification referred to in sub-section (1) the Tribunals in relation
to which the Appellate Tribunal may exercise jurisdiction.
9.
Composition of Appellate Tribunal.
9. Composition of Appellate Tribunal. An Appellate Tribunal
shall consist of one person only (hereinafter referred to as the
Presiding Officer of the Appellate Tribunal) to be appointed, by
notification, by the Central Government.
10.
Qualifications for appointment as Presiding Officer of the AppellateTribunal.
10. Qualifications for appointment as Presiding Officer of the
Appellate Tribunal. A person shall not be qualified for appointment as
the Presiding Officer of an Appellate Tribunal unless he-
(a) is, or has been, or is qualified to be, a Judge of a
High Court; or
(b) has been a member of the Indian Legal Service and has
held a post in Grade I of that Service for at least three
years; or
(c) has held office as the Presiding Officer of a Tribunal
for at least three years.
11.
Term of office.
11. Term of office. The Presiding Officer of an Appellate
Tribunal shall hold office for a term of five years from the date on
which he enters upon his office or until he attains the age of 1*[sixty-
five years,] whichever is earlier.
12.
Staff of the Appellate Tribunal.
12. Staff of the Appellate Tribunal. The provisions of section 7
(except those relating to Recovery Officer) shall, so far as may be
apply to any Appellate Tribunal as they apply to a Tribunal and
accordingly references in that section to "Tribunal" shall be
construed as references to "Appellate Tribunal" and references to
"Recovery Officer" shall be deemed to have been omitted.
13.
Salary and allowances and other terms and conditions of service ofPresiding
Officers.
13. Salary and allowances and other terms and conditions of
service of Presiding Officers. The salary and allowances payable to
and the other terms and conditions of service (including pension,
gratuity and other retirement benefits) of, the Presiding Officer of a
Tribunal or an Appellate Tribunal, shall be such as may be prescribed:
Provided that neither the salary and allowances nor the other
terms and conditions of service of the said Presiding Officers shall
be varied to their disadvantage after appointment.
14.
Filling up of vacancies.
14. Filling up of vacancies. If, for any reason other than
temporary absence, any vacancy occurs in the office of the Presiding
Officer of a Tribunal or an Appellate Tribunal, then the Central
Government shall appoint another person in accordance with the
provisions of this Act to fill the vacancy and the proceedings may be
continued before the Tribunal or the Appellate Tribunal from the stage
at which the vacancy is filled.
15.
Resignation and removal.
15. Resignation and removal. (1) The Presiding Officer of a
Tribunal or an Appellate Tribunal may, by notice in writing under his
hand addressed to the Central Government, resign his office:
Provided that the said Presiding Officer shall, unless he is
permitted by the Central Government to relinquish his office sooner,
continue to hold office until the expiry of three months from the date
of receipt of such notice or until a person duly appointed as his
successor enters upon his office or until the expiry of his term of
office, whichever is the earliest.
1 Subs. by Act 28 of 1995, s. 3
5
(2) The Presiding officer of a Tribunal or an Appellate Tribunal
shall not be removed from his office except by an order made by the
Central Government on the ground of proved misbehaviour or incapacity
after inquiry,-
(a) in the case of the Presiding Officer of a Tribunal,
made by a Judge of a High Court;
(b) in the case of the Presiding Officer of an Appellate
Tribunal, made by a Judge of the Supreme Court,
in which the Presiding Officer concerned has been informed of the
charges against him and given a reasonable opportunity of being heard
in respect of these charges.
(3) The Central Government may, by rules, regulate the procedure
for the investigation of misbehaviour or incapacity of the aforesaid
Presiding Officer.
16.
Orders constituting Tribunal or an Appellate Tribunal to be final andnot to
invalidate its proceedings.
16. Orders constituting Tribunal or an Appellate Tribunal to be
final and not to invalidate its proceedings. No order of the Central
Government appointing any person as the Presiding Officer of a
Tribunal or an Appellate Tribunal shall be called in question in any
manner, and no act or proceeding before a Tribunal or an Appellate
Tribunal shall be called in question in any manner on the ground
merely of any defect in the constitution of a Tribunal or an Appellate
Tribunal.
CHAP
JURISDICTION, POWERS AND AUTHORITY OF TRIBUNALS
CHAPTER III
JURISDICTION, POWERS AND AUTHORITY OF TRIBUNALS
17.
Jurisdiction, powers and authority of Tribunals.
17. Jurisdiction, powers and authority of Tribunals. (1) A
Tribunal shall exercise, on and from the appointed day, the
jurisdiction, powers and authority to entertain and decide applica-
tions from the banks and financial institutions for recovery of debts
due to such banks and financial institutions.
(2) An Appellate Tribunal shall exercise, on and from the
appointed day, the jurisdiction, powers and authority to entertain
appeals against any order made, or deemed to have been made, by a
Tribunal under this Act.
18.
Bar of jurisdiction.
18. Bar of jurisdiction. On and from the appointed day, no court
or other authority shall have, or be entitled to exercise, any
jurisdiction, powers or authority (except the Supreme Court, and a
High Court exercising jurisdiction under articles 226 and 227 of the
Constitution) in relation to the matters specified in section 17.
CHAP
PROCEDURE OF TRIBUNALS
CHAPTER IV
PROCEDURE OF TRIBUNALS
19.
Application to the Tribunal.
19. Application to the Tribunal. (1) Where a bank or a financial
institution has to recover any debt from any person, it may make an
application to the Tribunal within the local limits of whose
jurisdiction,--
(a) the defendant, or each of the defendants where there
are more than one, at the time of making the application,
actually and
6
voluntarily resides, or carries on business, or personally
works for gain; or
(b) any of the defendants, where there are more than one,
at the time of making the application, actually and
voluntarily resides or carries on business, or personally
works for gain; or
(c) the cause of action, wholly or in part, arises.
(2) Every application under sub-section (1) shall be in such
form and be accompanied by such documents or other evidence and by
such fee for filing the application as may be prescribed:
Provided that the fee may be prescribed having regard to the
amount of debt to be recovered:
Provided further that nothing contained in this sub-section
relating to fee shall apply to cases transferred to the Tribunal under
sub-section (1) of section 31.
(3) On receipt of the application under sub-section (1), the
Tribunal shall issue summons requiring the defendant to show cause
within thirty days of the service of summons as to why the relief
prayed for should not be granted.
(4) The Tribunal may, after giving the applicant and the
defendant an opportunity of being heard, pass such orders on the
application as it thinks fit to meet the ends of justice.
(5) The Tribunal shall send a copy of every order passed by it
to the applicant and the defendant.
(6) The Tribunal may make an interim order (whether by way of
injunction or stay) against the defendant to debar him from transfer-
ring, alienating or otherwise dealing with, or disposing of, any
property and assets belonging to him without the prior permission of
the Tribunal.
(7) The Presiding Officer shall issue a certificate under his
signatures on the basis of the order of the Tribunal, to the Recovery
Officer for recovery of the amount of debt specified in the
certificate.
(8) The application made to the Tribunal under sub-section (1)
shall be dealt with by it as expeditiously as possible and endeavour
shall be made by it to dispose of the application finally within six
months from the date of receipt of the application.
20.
Appeal to the Appellate Tribunal.
20. Appeal to the Appellate Tribunal. (1) Save as provided in
sub-section (2), any person aggrieved by an order made, or deemed to
have been made, by a Tribunal under this Act, may prefer an appeal to
an Appellate Tribunal having jurisdiction, in the matter.
(2) No appeal shall lie to the Appellate Tribunal from an order
made by a Tribunal with the consent of the parties.
(3) Every appeal under sub-section (1) shall be filed within a
period of forty-five days from the date on which a copy of the order
made, or deemed to have been made, by the Tribunal is received by him
and it shall be in such form and be accompanied by such fee as may be
prescribed:
Provided that the Appellate Tribunal may entertain an appeal
after expiry of the said period of forty-five days if it is satisfied
that there was sufficient cause for not filing it within that period.
(4) On receipt of an appeal under sub-section (1), the Appellate
Tribunal may, after giving the parties to the appeal, an opportunity
of
7
being heard, pass such orders thereon as it thinks fit, confirming,
modifying or setting aside the order appealed against.
(5) The Appellate Tribunal shall send a copy of every order made
by it to the parties to the appeal and to the concerned Tribunal.
(6) The appeal filed before the Appellate Tribunal under sub-
section (1) shall be dealt with by it as expeditiously as possible and
endeavour shall be made by it to dispose of the appeal finally within
six months from the date of receipt of the appeal.
21.
Deposit of amount of debt due, on filing appeal.
21. Deposit of amount of debt due, on filing appeal. Where, an
appeal is preferred by any person from whom the amount of debt is due
to a bank or a financial institution or a consortium of banks or
financial institutions, such appeal shall not be entertained by the
Appellate Tribunal unless such person has deposited with the Appellate
Tribunal seventy-five per cent. of the amount of debt so due from him
as determined by the Tribunal under section 19:
Provided that the Appellate Tribunal may, for reasons to be re-
corded in writing, waive or reduce the amount to be deposited under
this section.
22.
Procedure and powers of the Tribunal and the Appellate Tribunal.
22. Procedure and powers of the Tribunal and the Appellate
Tribunal. (1) The Tribunal and the Appellate Tribunal shall not be
bound by the procedure laid down by the Code of Civil Procedure, 1908
(5 of 1908), but shall be guided by the principles of natural justice
and, subject to the other provisions of this Act and of any rules, the
Tribunal and the Appellate Tribunal shall have powers to regulate their
own procedure including the places at which they shall have their
sittings.
(2) The Tribunal and the Appellate Tribunal shall have, for the
purposes of discharging their functions under this Act, the same
powers as are vested in a civil court under the Code of Civil
Procedure, 1908 (5 of 1908), while trying a suit, in respect of the
following matters, namely:-
(a) summoning and enforcing the attendance of any person
and examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits;
(d) issuing corn-missions for the examination of witnesses
or documents;
(e) reviewing its decisions;
(f) dismissing an application for default or deciding it ex
parte;
(g) setting aside any order of dismissal of any application
for default or any order passed by it ex parte;
(h) any other matter which may be prescribed.
(3) Any proceeding before the Tribunal or the Appellate Tribunal
shall be deemed to be a judicial proceeding within the meaning of
sections 193 and 228, and for the purposes of section 196, of the
Indian Penal Code (45 of 1860) and the Tribunal or the Appellate
Tribunal shall be deemed to be a civil court for all the purposes, of
section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973
(2 of 1974).
23.
Right to legal representation and Presenting Officers.
23. Right to legal representation and Presenting Officers. (1) A
bank or a financial institution making an application to a Tribunal
or an appeal to an Appellate Tribunal may authorise one or more legal
practitioners_or any of its officers to act as Presenting Officers,
and every person so authorised by it may present its case before the
Tribunal or the Appellate Tribunal.
8
(2) The defendant may either appear in person or authorise one
or more legal practitioners or any of his or its officers to present
his or its case before the Tribunal or the Appellate Tribunal.
24.
Limitation.
24. Limitation. The provisions of the Limitation Act, 1963 (36
of 1963), shall, as far as may be, apply to an application made to a
Tribunal.
CHAP
RECOVERY OF DEBT DETERMINED By TRIBUNAL
CHAPTER V
RECOVERY OF DEBT DETERMINED By TRIBUNAL
25.
Modes of recovery of debts.
25. Modes of recovery of debts. The Recovery Officer shall, on
receipt of the copy of the certificate under sub-section (7) of
section 19, proceed to recover the amount of debt specified in the
certificate by one or more of the following modes, namely: -
(a) attachment and sale of the movable or immovable
property of the defendant;
(b) arrest of the defendant and his detention in prison;
(c) appointing a receiver for the management of the movable
or immovable properties of the defendant.
26.
Validity of certificate and amendment thereof.
26. Validity of certificate and amendment thereof. (1) It shall
not be open to the defendant to dispute before the Recovery Officer
the correctness of the amount specified in the certificate, and no
objection to the certificate on any other ground shall also be
entertained by the Recovery Officer.
(2) Notwithstanding the issue of a certificate to a Recovery
Officer, the Presiding Officer shall have power to withdraw the
certificate or correct any clerical or arithmetical mistake in the
certificate by sending an intimation to the Recovery Officer.
(3) The Presiding Officer shall intimate to the Recovery Officer
any order withdrawing or cancelling a certificate or any correction
made by him under sub-section (2).
27.
Stay of proceedings under certificate and amendment or withdrawalthereof.
27. Stay of proceedings under certificate and amendment or
withdrawal thereof. (1) Notwithstanding that a certificate has been
issued to the Recovery Officer for the recovery of any amount, the
Presiding Officer may grant time for the payment of the amount, and
thereupon the Recovery Officer shall stay the proceedings until the
expiry of the time so granted.
(2) Where a certificate for the recovery of amount has been
issued, the Presiding Officer shall keep the Recovery Officer informed
of any amount paid or time granted for payment, subsequent to the
issue of such certificate to the Recovery Officer.
(3) Where the order giving rise to a demand of amount for
recovery of debt has been modified in appeal, and, as a consequence
thereof the demand is reduced, the Presiding Officer shall stay the
recovery of such part of the amount of the certificate as pertains to
the said reduction for the period for which the appeal remains
pending.
(4) Where a certificate for the recovery of debt has been
received by the Recovery Officer and subsequently the amount of the
outstanding demands is reduced as a result of an appeal, the Presiding
officer shall, when the order which was the subject matter of such
appeal has become final and conclusive, amend the certificate or
withdraw it, as the case may be.
9
28.
Other modes of recovery.
28. Other modes of recovery. (1) Where a certificate has been
issued to the Recovery Officer under sub-section (7) of section 19,
the Recovery Officer may, without prejudice to the modes of recovery
specified in section 25, recover the amount of debt by any one or
more of the modes provided under this section.
(2) If any amount is due from any person to the defendant, the
Recovery Officer may require such person to deduct from the said
amount, the amount of debt due from the defendant under this Act and
such person shall comply with any such requisition and shall pay the
sum so deducted to the credit of the Recovery Officer:
Provided that nothing in this sub-section shall apply to any part
of the amount exempt from attachment in execution of a decree of a
civil court under section 60 of the Code of Civil Procedure, 1908 (5
of 1908).
(3) (i) The Recovery Officer may, at any time or from time to
time, by notice in writing, require any person from whom money is due
or may become due to the defendant or to any person who holds or may
subsequently hold money for or on account of the defendant, to pay to
the Recovery Officer either forthwith upon the money becoming due or
being held or within the time specified in the notice (not being
before the money becomes due or is held) so much of the money as is
sufficient to pay the amount of debt due from the defendant or the
whole of the money when it is equal to or less than that amount.
(ii) A notice under this sub-section may be issued to any person
who holds or may subsequently hold any money for or on account of the
defendant jointly with any other person and for the purposes of this
sub-section, the shares of the joint holders in such amount shall be
presumed, until the contrary is proved, to be equal.
(iii) A copy of the notice shall be forwarded to the
defendant at his last address known to the Recovery Officer and in the
case of a joint account to all the joint holders at their last
addresses known to the Recovery Officer.
(iv) Save as otherwise provided in this sub-section, every person
to whom a notice is issued under this sub-section shall be bound to
comply with such notice, and, in particular. where any such notice is
issued to a post office, bank, financial institution, or an insurer,
it shall not be necessary for any pass book, deposit receipt, policy
or any other document to be produced for the purpose of any entry,
endorsement or the like to be made before the payment is made
notwithstanding any rule, practice or requirement to the contrary.
(v) Any claim respecting any property in relation to which a
notice under this sub-section has been issued arising after the date
of the notice shall be void as against any demand contained in the
notice.
(vi) Where a person to whom a notice under this sub-section is
sent objects to it by a statement on oath that the sum demanded or the
part thereof is not due to the defendant or that he does not hold any
money for or on account of the defendant, then, nothing contained in
this sub-section shall be deemed to require such person to pay any
such sum or part thereof, as the case may be, but if it is discovered
that such statement was false in any material particular, such person
shall be personally liable, to the Recovery Officer to the extent of
his own liability to the defendant on the date of the notice, or to
the extent of the defendant's liability for any sum due under this
Act, whichever is less,
10
(vii) The Recovery Officer may, at any time or from time to
time, amend or revoke any notice under this sub-section or extend the
time for making any payment in pursuance of such notice.
(viii) The Recovery Officer shall grant a receipt for any amount
paid in compliance with a notice issued under this sub-section, and
the person so paying shall be fully discharged from his liability to
the defendant to the extent of the amount so paid.
(ix) Any person discharging any liability to the defendant after
the receipt of a notice under this sub-section shall be personally
liable to the Recovery Officer to the extent of his own liability to
the defendant so discharged or to the extent of the defendant's
liability for any debt due under this Act, whichever is less.
(x) If the person to whom a notice under this sub-section is
sent fails to make payment in pursuance thereof to the Recovery
Officer, he shall be deemed to be a defendant in default in respect of
the amount specified in the notice and further proceedings may be
taken against him for the realisation of the amount as if it were a
debt due from him, in the manner provided in sections 25, 26 and 27
and the notice shall have the same effect as an attachment of a debt
by the Recovery Officer in exercise of his powers under section 25.
(4) The Recovery Officer may apply to the court in whose custody
there is money belonging to the defendant for payment to him of the
entire amount of such money, or if it is more than the amount of debt
due, an amount sufficient to discharge the amount of debt so due.
(5) The Recovery Officer may recover any amount of debt due from
the defendant by distraint and sale of his movable property in the
manner laid down in the Third Schedule to the Income-tax Act,
1961 (43 of 1961).
29.
Application of certain provisions of Income-tax Act.
29. Application of certain provisions of Income-tax Act. The
provisions of the Second and Third Schedules to the Income-tax Act,
1961 (43 of 1961) and the Income-tax (Certificate Proceedings) Rules,
1962, as in force from time to time shall, as far as possible, apply
with necessary modifications as if the said provisions and the rules
referred to the amount of debt due under this Act instead of to the
income-tax:
Provided that any reference, under the said provisions and the
rules to the "assessee" shall be construed as a reference to the
defendant under this Act.
30.
Orders of Recovery Officer to be deemed as orders of Tribunal.
30. Orders of Recovery Officer to be deemed as orders of
Tribunal. Notwithstanding anything contained in section 29, an order
made by the Recovery Officer in exercise of his powers under sections
25 to 28 (both inclusive), shall be deemed to have been made by the
Tribunal and an appeal against such order shall lie to the Appellate
Tribunal.
CHAP
MISCELLANEOUS
CHAPTER VI
MISCELLANEOUS
31.
Transfer of pending cases.
31. Transfer of pending cases. (1) Every suit or other
proceeding pending before any court immediately before the date of
establishment of a Tribunal under this Act, being a suit or proceeding
the cause of action whereon it is based is such that it would have
been, if it had arisen after such establishment, within the
jurisdiction of such Tribunal, shall stand transferred on that date to
such Tribunal:
11
Provided that nothing in this sub-section shall apply to any
appeal pending as aforesaid before any court.
(2) Where any suit or other proceeding stands transferred from
any court to a Tribunal under sub-section (1),-
(a) the court shall, as soon as may be after such transfer,
forward the records of such suit or other proceeding to the
Tribunal; and
(b) the Tribunal may, on receipt of such records, proceed
to deal with such suit or other proceeding, so far as may be,
in the same manner as in the case of an application made
under section 19 from the stage which was reached before such
transfer or from any earlier stage or de novo as the Tribunal
may deem fit.
32.
Members and staff of Tribunals to be public servants.
32. Members and staff of Tribunals to be public servants. The
Presiding Officer, the Recovery Officer and other officers and
employees of a Tribunal and an Appellate Tribunal shall be deemed to
be public servants within the meaning of section 21 of the Indian
Penal Code (45 of 1860).
33.
Protection of action taken in good faith.
33. Protection of action taken in good faith. No suit,
prosecution or other legal proceeding shall lie against the Central
Government or against the Presiding Officer of a Tribunal or of an
Appellate Tribunal or against the Recovery Officer for anything which
is in good faith done or intended to be done in pursuance of this Act
or any rule or order made thereunder.
34.
Act to have overriding effect.
34. Act to have overriding effect. (1) Save as provided under
sub-section (2), the provisions of this Act shall have effect
notwithstanding anything inconsistent therewith contained in any other
law for the time being in force or in any instrument having effect by
virtue of any law other than this Act.
(2) The provisions of this Act or the rules made thereunder
shall be in addition to, and not in derogation of, the Industrial
Finance Corporation Act, 1948 (15 of 1948), the State Financial
Corporations Act, 1951 (63 of 1951), the Unit Trust of India Act,
1963 (52 of 1963), the Industrial Reconstruction Bank of India Act,
1984 ( 62 of 1984), and the Sick Industrial Companies (Special
Provisions) Act, 1985 (1 of 1986).
35.
Power to remove difficulties.
35. Power to remove difficulties. (1) If any difficulty arises
in giving effect to the provisions of this Act, the Central Government
may, by order published in the Official Gazette, make such
provisions, not inconsistent with the provisions of this Act, as
appear to it to be necessary or expedient for removing the
difficulty:
Provided that no such order shall be made after the expiry of the
period of three years from the date of commencement of this Act.
(2) Every order made under this section shall, as soon as may be
after it is made, be laid before each House of Parliament.
36.
Power to make rules.
36. Power to make rules. (1) The Central Government may, by
notification, make rules to carry out the provisions of this Act.
12
(2) Without prejudice to the generality of the foregoing powers, such
rules may provide for all or any of the following matters, namely: -
(a) the salaries and allowances and other terms and conditions
of service of the Presiding Officers, Recovery officers and
other officers and employees of the Tribunal and the Appellate
Tribunal under sections 7, 12 and 13;
(b) the procedure for the investigation of misbehaviour or
incapacity of the Presiding Officers of the Tribunal and
Appellate Tribunals under sub-section (3) of section 15;
(c) the form in which an application may be made under
section 19, the documents and other evidence by which such
application shall be accompanied and the fees payable in
respect of the filing of such application;
(d) the form in which an appeal may be filed before the
Appellate Tribunal under section 20 and the fees payable in
respect of such appeal;
(e) any other matter which is required to be, or may be,
prescribed.
(3) Every rule made by the Central Government under this Act
shall be laid, as soon as may be after it is made, before each House
of Parliament, while it is in session, for a total period of thirty
days which may be comprised in one session or in two or more succes-
sive sessions and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, both
Houses agree in making any modification in the rule or both Houses
agree that the rule should not be made, the rule shall thereafter have
effect only in such modified form or be of no effect, as the case may
be; so, however, that any such modification or annulment shall be with-
out prejudice to the validity of anything previously done under that
rule.
37.
Repeal and saving.
37. Repeal and saving. (1) The Recovery of Debts Due to Banks
and Financial Institutions Ordinance, 1993 (Ord. 25 of 1993) is
hereby repealed.
(2) Notwithstanding such repeal, anything done or any action
taken under the said Ordinance, shall be deemed to have been done or
taken under the corresponding provisions of this Act.
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