Bar of Jurisdiction of Civil Courts vs Debts Recovery Tribunals

The bar of jurisdiction of civil courts against Debts Recovery Tribunals (DRTs) means that once a case is filed before a DRT, no other court, including the civil courts, can entertain any proceeding in relation to the same debt.

The bar of jurisdiction is provided in Section 18 of the Recovery of Debts and Bankruptcy Act, 1993. The section states that:

No court, other than a Debts Recovery Tribunal, shall have jurisdiction to entertain any suit or proceeding in respect of any matter which a Debts Recovery Tribunal is empowered to entertain and decide under this Act.

The bar of jurisdiction applies to all civil courts, including the High Courts and the Supreme Court. This means that even if a party challenges the order of a DRT in the High Court or the Supreme Court, the court will not have the jurisdiction to hear the matter.

The bar of jurisdiction is subject to a few exceptions. The exceptions are as follows:

  • A suit or proceeding may be filed before a civil court if the DRT has no jurisdiction to entertain the matter. For example, if the debt is not secured by mortgage of immovable property, the DRT will not have jurisdiction to entertain the matter. In such a case, the party can file a suit in the civil court.
  • A suit or proceeding may be filed before a civil court if the DRT has passed an order that is not in accordance with the law. For example, if the DRT has passed an order that is ultra vires the law, the party can challenge the order in the civil court.
  • A suit or proceeding may be filed before a civil court if the DRT has ceased to exist. For example, if the DRT has been dissolved or has become defunct, the party can file a suit in the civil court.

Here are some MCQs on the bar of jurisdiction of civil courts vs Debts Recovery Tribunals (DRTs) under the Recovery of Debts and Bankruptcy Act, 1993:

  1. Is there a bar of jurisdiction of civil courts against Debts Recovery Tribunals (DRTs)?
    • Yes
    • No
    • Only if the debt is secured by mortgage of immovable property.
    • Only if the debt is less than Rs. 1 lakh.
    • The answer is Yes. There is a bar of jurisdiction of civil courts against Debts Recovery Tribunals (DRTs).
  2. What are the exceptions to the bar of jurisdiction?
    • A suit or proceeding may be filed before a civil court if the DRT has no jurisdiction to entertain the matter.
    • A suit or proceeding may be filed before a civil court if the DRT has passed an order that is not in accordance with the law.
    • A suit or proceeding may be filed before a civil court if the DRT has ceased to exist.
    • All of the above
    • The answer is All of the above. The exceptions to the bar of jurisdiction are as mentioned above.