Stay and Amendment for Recovery Proceeding and Certificate as per Debts Recovery Tribunals

The Debts Recovery Tribunals (DRTs) have the power to stay or amend recovery proceedings and certificates issued by them. The DRT can exercise this power on the application of the creditor, the debtor, or any other person interested in the matter.

The DRT may stay or amend a recovery proceeding or certificate if it is satisfied that:

  • There is a prima facie case for doing so.
  • The interests of justice so require.
  • The stay or amendment is necessary to prevent irreparable harm to the applicant.

The DRT may also stay or amend a recovery proceeding or certificate if it is satisfied that:

  • The creditor has not complied with the provisions of the Recovery of Debts and Bankruptcy Act, 1993.
  • The debtor has made a payment in full or part of the debt.
  • The debt has been extinguished by law.

The DRT’s decision to stay or amend a recovery proceeding or certificate is final and cannot be challenged in any court.

Here are some MCQs on the stay and amendment for recovery proceeding and certificate as per Debts Recovery Tribunals (DRTs) under the Recovery of Debts and Bankruptcy Act, 1993:

  1. Can the Debts Recovery Tribunals (DRTs) stay or amend recovery proceedings and certificates issued by them?
    • Yes
    • No
    • Only if the creditor agrees to it.
    • Only if the debtor agrees to it.
    • The answer is Yes. The Debts Recovery Tribunals (DRTs) have the power to stay or amend recovery proceedings and certificates issued by them.
  2. What are the grounds on which the DRT can stay or amend a recovery proceeding or certificate?
    • There is a prima facie case for doing so.
    • The interests of justice so require.
    • The stay or amendment is necessary to prevent irreparable harm to the applicant.
    • All of the above
    • The answer is All of the above. The DRT can stay or amend a recovery proceeding or certificate if it is satisfied that any of the grounds mentioned above are present.
  3. What is the effect of the DRT’s decision to stay or amend a recovery proceeding or certificate?
    • The recovery proceeding or certificate will be stayed or amended.
    • The recovery proceeding or certificate will be dismissed.
    • The creditor will be required to pay interest on the debt.
    • The debtor will be required to pay interest on the debt.
    • The answer is The recovery proceeding or certificate will be stayed or amended. The decision of the DRT is final and cannot be challenged in any court.