1. Challenge to the mandatory e-filing of pleadings before Debt Recovery Tribunals and Appellate Tribunals under the Recovery of Debts and Bankruptcy Act 1993. (Para 1 , 2 , 3 , 4 )
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2023 Supreme(SC) 306
SUPREME COURT OF INDIA
DHANANJAYA Y. CHANDRACHUD, CJI., PAMIDIGHANTAM SRI NARASIMHA, J.B. PARDIWALA, JJ.
M.P. High Court Bar Association – Appellant
Versus
Union of India & Ors – Respondents
Writ Petition (Civil) No 155 of 2023
Decided on : 29-03-2023
Important Points
The main legal point established in the judgment is that while e-filing provides transparency and efficiency in the administration of justice, the digital divide in the country must be addressed to ensure that no segment of the citizens is unable to access justice through e-filing.
Subject
Civil Law - Administrative Law
Act Referred
Recovery of Debts and Bankruptcy Act 1993: S.36
Debt Recovery Tribunals (DRTs) and Debt Recovery Appellate Tribunals (DRATs) Electronic Filing Rules 2020: R.3
Constitution of India: Art.32
Debt Recovery Tribunals (DRTs) and Debt Recovery Appellate Tribunals (DRATs) Electronic Filing Rules 2020: R.3
Constitution of India: Art.32
Headnote
E-Filing Rules - Challenge to Amended Rule 3 - Recovery of Debts and Bankruptcy Act 1993 - Section 36 - The court discussed the provisions of the amended Rule 3 of the E-filing Rules and the impact of mandatory e-filing on the stakeholders. It highlighted the gradual introduction of e-filing, the training programs conducted, and the need to address the digital divide in the country. The court issued directions to address the genuine grievances of the members of the Bar and to ensure that no segment of the citizens is unable to access justice through e-filing.
Fact of the Case:
The petition challenged the provisions of amended Rule 3 of the E-filing Rules and sought a direction to continue with hybrid filing of pleadings and applications before the Debt Recovery Tribunals (DRTs) and Debt Recovery Appellate Tribunals (DRATs) across the country.
Finding of the Court:
The court found that while e-filing provides transparency and efficiency in the administration of justice, there is a digital divide in the country, and not all citizens have access to the internet or the facilities required for the effective use of technology. The court issued directions to address the genuine grievances of the members of the Bar and to ensure that no segment of the citizens is unable to access justice through e-filing.
Issues: The issues involved the challenge to the provisions of amended Rule 3 of the E-filing Rules, the impact of mandatory e-filing on stakeholders, and the need to address the digital divide in the country.
Ratio Decidendi: The court held that while e-filing provides transparency and efficiency in the administration of justice, the digital divide in the country must be addressed to ensure that no segment of the citizens is unable to access justice through e-filing. The court issued directions to address the genuine grievances of the members of the Bar and to ensure that no segment of the citizens is unable to access justice through e-filing.
Final Decision: The court disposed of the petition and issued directions to address the genuine grievances of the members of the Bar and to ensure that no segment of the citizens is unable to access justice through e-filing.
Legal Category Hierarchy
Table of Contents
2. Mandatory e-filing without stakeholder consultation ignores the digital divide and connectivity issues, necessitating exceptions for senior citizens, female practitioners, and cases of sufficient cause. (Para 8 , 9 )
3. E-filing enhances transparency and efficiency, but the digital divide must be addressed to ensure that technology does not hinder access to justice for any citizen. (Para 11 , 12 , 13 , 20 )
4. Mandatory adoption of technology in judicial proceedings is permissible provided adequate support mechanisms exist to prevent digital exclusion from obstructing the right of access to justice. (Para 12 , 13 , 21 )
5. Petition disposed with directions to establish e-sewa kendras, allow Bar Association representations, and implement monitoring mechanisms to facilitate inclusive e-filing. (Para 14 , 15 , 18 , 22 , 23 )
6. Is mandatory e-filing in tribunals permissible despite the digital divide?
Yes, as e-filing increases transparency and efficiency. However, the state must provide support mechanisms, such as help desks and e-sewa kendras, to ensure that the digital divide does not obstruct access to justice. (Para 12 , 13 , 18 , 21 )
7. Should specific groups like female practitioners be exempt from mandatory e-filing?
No. While the court acknowledged a stark gender digital divide in ICT skills and internet usage, it rejected general exceptions for female practitioners, stating there is no inherent gender-based inability to use technology. (Para 20 )
8. How can the judiciary ensure that mandatory e-filing does not exclude litigants with limited technological access?
By establishing e-sewa kendras equipped with computers, scanners, and internet connectivity, providing technical assistance through help desks, and creating Standard Operating Procedures to facilitate a one-step solution for e-services. (Para 17 , 18 )
JUDGMENT :
Dhananjaya Y. Chandrachud, CJI.
1. Thirty-nine Debt Recovery Tribunals1[“DRTs”] and five Debt Recovery Appellate Tribunals2[“DRATs”] have been constituted under the Recovery of Debts and Bankruptcy Act 19933[ “1993 Act”].
2. The Department of Financial Services in the Union Ministry of Finance issued a notification on 23 January 2020 by which the Debt Recovery Tribunals (DRTs) and Debt Recovery Appellate Tribunals (DRATs) Electronic Filing Rules 20204[“2020 Rules”] were notified. Originally, the e-filing of pleadings and applications was made optional. On 22 July 2021, a notification was issued by which the e-filing of cases involving a value of Rs 100 crores and above was made mandatory. At a conference of the Chairpersons of DRATs and the Presiding Officers of DRTs on 9 June 2022, it was recommended that e-filing should be made mandatory, irrespective of the amount involved in the proceedings.
3. On 31 January 2023, a notification was issued by the Union government in exercise of powers under Section 36 of the 1993 Act for amending the Electronic Filing Rules so as to make e-filing of pleadings by applicants mandatory. Any other form of filing, it is provided, shall not be taken on the record.
4. These proceedings under Article 32 of the Constitution have been instituted to challenge the provisions of amended Rule 3 of the E-filing Rules and for a direction to the DRTs and DRATs across the country to continue with hybrid filing of pleadings and applications before them.
5. Notice was issued in these proceedings on 24 February 2023.
6. Pursuant to the order issuing notice, a counter affidavit has been filed by an officer in the Department of Financial Services of the Union Ministry of Finance. Besides setting out the sequence leading up to the amendment to the E-filing Rules, the affidavit states that prior to the issuance of the notification dated 31 January 2023, an analysis was carried out of the filing of cases before the DRTs. It was observed that in respect of cases where the value is less than Rs 100 crores, the percentage of e-filed cases was approximately 25.89% in the case of Original Applications5[“OAs”] and 20.84% in the case of Securitization Applications6[“SAs”]. This was when e-filing for cases involving a value of less than Rs 100 crores was not mandatory prior to 31 January 2023. As regards cases involving an amount of Rs 100 crores and above, the percentage of e-filed cases was 15.87% in the case of OAs and 23.81% in SAs. On the basis of the above data, it has been submitted that even smaller borrowers were filing their cases through e-filing even when it was not mandatory. The percentage of e-filed cases to the total filed cases where the suit amount was Rs 50 lakhs or below was 27.46% of OAs filed and 20.63% of SAs filed. The affidavit indicates that mandatory e-filing, besides facilitating compliance with timelines, facilitates 24x7 filing by litigants even from remote places with the help of the internet. The total number of e-filed applications across all DRTs in the country during the period between 1 February 2023 and 2 March 2023 was 10,415.
7. The counter affidavit states that help desks for facilitating stakeholders for hassle free e-filing of cases have been set up at DRTs and DRATs where currently, 90 staff members are working as Technical Assistants and Data Entry Operators for facilitating e-filing. They are stated to be assisting internal and external stakeholders in the resolution of functional and technical difficulties. Besides this, it has been stated that a help desk option is available on the e-filing website of DRTs and DRATs where users can log their requests/grievances to be addressed on priority. A three-tier grievance redressal mechanism has, therefore, been provided. The counter affidavit has indicated that comprehensive training programmes were conducted by the Department of Financial Services in coordination with the DRTs/DRATs for making litigants and members of Bar Associa
