The Recovery Of Debts And Bankruptcy Act, 1993
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Free sample — 8 of 66 rapid-fire Q&A cards.
What is the full name of the act commonly referred to as the RDB Act, 1993?
The full name is the Recovery of Debts and Bankruptcy Act, 1993, which was enacted to provide for the establishment of Debt Recovery Tribunals for expeditious adjudication and recovery of debts due to banks and financial institutions.
What is the minimum threshold debt amount for filing before a DRT under the amended RDB Act?
Rupees twenty lakh or more after 2018 amendment
What was the primary objective behind enacting the Recovery of Debts and Bankruptcy Act, 1993?
The primary objective was to provide a speedy mechanism for recovery of debts due to banks and financial institutions by setting up specialised Debt Recovery Tribunals (DRTs), bypassing the slow ordinary civil courts.
How many DRTs are currently operational across India under the RDB Act?
Approximately thirty-nine DRTs across major Indian cities
What is the minimum amount of debt required for a bank to file an application before a Debt Recovery Tribunal under the RDB Act, 1993?
The minimum threshold is Rs. 20 lakh; debts below this amount cannot be adjudicated by a DRT and must be pursued through ordinary civil courts.
What is the maximum penalty for wilful disobedience of a DRT order under the RDB Act?
Imprisonment up to three months or fine or both
Who presides over a Debt Recovery Tribunal (DRT) constituted under the RDB Act, 1993?
A DRT is presided over by a Presiding Officer, who is a person qualified to be a District Judge, appointed by the Central Government.
Under the RDB Act, which court has the power to hear appeals against DRAT orders?
High Court having jurisdiction over the DRAT
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