The Debts Recovery Tribunals (DRTs) are protected from legal action for any action taken in good faith under the Recovery of Debts and Bankruptcy Act, 1993. This means that the DRTs and their officers cannot be sued for anything they do in the course of their duties, as long as they act in good faith.
The following are some of the actions that are protected under the Act:
- Issuing a notice of demand.
- Passing an order for recovery of debt.
- Appointing a Recovery Officer.
- Taking possession of the debtor’s property.
- Selling the debtor’s property.
The protection from legal action is not absolute. The DRTs and their officers can still be sued if they act mala fide or in excess of their powers.
Here are some MCQs on the protection of action taken in good faith as per Debts Recovery Tribunals (DRTs) under the Recovery of Debts and Bankruptcy Act, 1993:
- Are the Debts Recovery Tribunals (DRTs) protected from legal action for any action taken in good faith under the Recovery of Debts and Bankruptcy Act, 1993?
- Yes
- No
- Only if the action is taken by the Chairperson of the DRT
- Only if the action is taken by the Recovery Officer
- The answer is Yes. The DRTs and their officers are protected from legal action for any action taken in good faith under the Recovery of Debts and Bankruptcy Act, 1993.
- What are some of the actions that are protected under the Act?
- Issuing a notice of demand.
- Passing an order for recovery of debt.
- Appointing a Recovery Officer.
- Taking possession of the debtor’s property.
- Selling the debtor’s property.
- All of the above
- The answer is All of the above. The actions mentioned above are all protected under the Act.
- Is the protection from legal action absolute?
- Yes
- No
- Only if the action is taken by the Chairperson of the DRT
- Only if the action is taken by the Recovery Officer
- The answer is No. The protection from legal action is not absolute. The DRTs and their officers can still be sued if they act mala fide or in excess of their powers.