The banks and financial institutions in India over the years have been experiencing considerable difficulties in recovering huge amounts of public money blocked in the hands of defaulting borrowers as the existing procedure for recovery of debts due to banks and financial institutions was not simple, swift and capable of reaching a final decision within a time frame.
The Government of India, as a step to streamline the system, appointed committees like “The Tiwari Committee, the Committee on Financial Systems headed by Shri M.Narasimham, former Governor of Reserve Bank of India, and “High Level Committee″ headed by V.S. Hegde. These Committees had recommended the setting up of special tribunals for speedy realization of dues of the credit institutions.
President of India promulgated The Recovery of Debts Due to Banks and Financial Institutions Ordinance, 1993 (Ordinance No.25 of 1993) on 24th June 1993, to provide for establishment of Tribunals for expeditious adjudication and recovery of debts due to banks and financial institutions.
Later, the Ordinance was replaced by The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (DRT Act) enacted by the Parliament and given assent by the President of India on 27th August 1993. The Act came in to force on 24th June 1993. Immediately action was initiated by the Government for establishment of Recovery Tribunals and Appellate Tribunals in the country. Presently, there are 33 DRTs and 5 DRATs functioning all over the country. The pecuniary jurisdiction of these Tribunals is Rs.10.00 lakhs and above. Debts Recovery Tribunal at Coimbatore started its functions with effect from 22.3.2002 in the above address. Presently its Territorial Jurisdiction extends to Districts of Coimbatore, Nilgiris, Tiruppur, Salem, Karur, Namakkal and Erode in the State of Tamil Nadu.
The Debts Recovery Tribunal is headed by a Presiding Officer and other
officers consist of one Registrar, two Recovery Officers and one
Assistant Registrar with supporting staff. The total sanctioned strength of DRT,
Coimbatore is 30.