Limitation of Debts Recovery Tribunals

The Debts Recovery Tribunals (DRTs) have a limitation period of three years from the date on which the debt becomes due for filing an application for the recovery of the debt. This means that if an application is filed after the expiry of the limitation period, it will be dismissed by the DRT.

The limitation period can be extended by the DRT in the following cases:

  • If the applicant can show that he/she was prevented by fraud or collusion from filing the application within the limitation period.
  • If the applicant can show that he/she was under a disability within the limitation period.
  • If the applicant can show that the delay was caused by any other sufficient cause.

The limitation period is not applicable in the following cases:

  • If the debt is secured by a mortgage of immovable property.
  • If the debt is due to the Central Government or a State Government.
  • If the debt is due to a public sector undertaking.

Here are some MCQs on the limitation of Debts Recovery Tribunals (DRTs) under the Recovery of Debts and Bankruptcy Act, 1993:

  1. What is the limitation period for filing an application for the recovery of a debt before the Debts Recovery Tribunals (DRTs)?
    • Three years
    • Six years
    • Ten years
    • There is no limitation period
    • The answer is Three years. The limitation period for filing an application for the recovery of a debt before the Debts Recovery Tribunals (DRTs) is three years from the date on which the debt becomes due.
  2. Can the limitation period be extended?
    • Yes
    • No
    • Only if the applicant can show that he/she was prevented by fraud or collusion from filing the application within the limitation period.
    • Only if the applicant can show that he/she was under a disability within the limitation period.
    • The answer is Yes. The limitation period can be extended by the DRT in the following cases:
      • If the applicant can show that he/she was prevented by fraud or collusion from filing the application within the limitation period.
      • If the applicant can show that he/she was under a disability within the limitation period.
      • If the applicant can show that the delay was caused by any other sufficient cause.
  3. Is the limitation period applicable in all cases?
    • Yes
    • No
    • Only if the debt is secured by a mortgage of immovable property.
    • Only if the debt is due to the Central Government or a State Government.
    • The answer is No. The limitation period is not applicable in the following cases:
      • If the debt is secured by a mortgage of immovable property.
      • If the debt is due to the Central Government or a State Government.
      • If the debt is due to a public sector undertaking.