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2025 Supreme(Kar) 2912

2025 KHC 43053
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
E.S. INDIRESH, J.
Mrs. Ranga Lakshmamma - Petitioner
Versus 
Union Of India Ministry Of Finance (Financial Services) Represented By Its Secretary Banking Administration – Respondent 
WRIT PETITION NO. 15375 OF 2015 (GM-RES), C/W WRIT PETITION NOS. 15374 OF 2015, 15376 OF 2015, 15377 OF 2015, 15378 OF 2015, 15379 OF 2015
Decided On : 29-10-2025
Advocates Appeared : 
For the Petitioner : Sri. R. Ashok Kumar, Advocate
For the Respondent : Smt. Anuparna Bordoloi, Cgsc

The Union of India is obligated to promptly implement improvements for Debt Recovery Tribunals, as suggested by the Supreme Court, underlining the supervisory authority of High Courts as stipulated in Article 227 of the Constitution.

Headnote:(A) Recovery of Debts Due to Banks and Financial Institutions Act, 1993 - Establishment of Debt Recovery Tribunals - Petitioner sought the constitution of a Full Time Debt Recovery Tribunal in Karnataka, citing the Supreme Court's judgment in (2013) 2 SCC 574 and inaction by the Union of India - Court notes the urgency in addressing conditions at Tribunals and agrees with the proposals laid out for improved infrastructure and administration of justice (Paras 2, 5, 9, 10).

(B) Jurisdiction - High Courts' superintendence under Article 227 of the Constitution - Observations made regarding oversight of DRTs and DRATs to ensure efficient functioning, as per Section 18 of the RDDBFI Act (Paras 10.1, 10.2).

Facts of the case:
The petitioners requested the establishment of a DRT in Karnataka, asserting that the Union of India failed to implement prior Supreme Court directives.

Findings of Court:
The court directed the Union of India to implement the agreed-upon proposals for improving DRTs expeditiously, emphasizing the need for effective superintendence by High Courts.

Issues: Whether the Union of India is duty-bound to comply with the Supreme Court's observations regarding DRT establishment.

Ratio Decidendi: The court reaffirmed the Union of India's obligation to enhance the functioning of DRTs according to Supreme Court suggestions; it emphasized the critical role of High Courts in overseeing these Tribunals.

Result: Writ petitions disposed of.

Table of Content
1. grievance regarding debt recovery tribunal. (Para 2)
2. arguments for and against establishment of drt. (Para 3 , 4)
3. proposals for improving drts. (Para 5)
4. duties of the union of india regarding court observations. (Para 6)

ORDER :

E.S.INDIRESH, J.

Heard the learned counsel appearing for the parties.

2. In these writ petitions, the grievance of the petitioners is to direct the respondent-Union of India to constitute and establish a Full Time Debt Recovery Tribunal for the State of Karnataka.

3. Sri. R. Ashok Kumar, learned counsel for the petitioners places reliance on the judgment of the Hon'ble Supreme Court in the case of Union of India and others vs. Debts Recovery Tribunal Bar Association and Another reported in (2013) 2 SCC 574 and further submitted that learned ASG, had undertaken before the Hon'ble Supreme Court with regard to increase the number of DRTs /DRADs in the respective States, however, no steps have been take in this regard.

4. Per contra, Smt. Anuparna Bordoloi, learned CGSC for the respondent-Union of India submitted that, the remedy available for the petitioners is to approach the Hon'ble Supreme Court, seeking implementation of the order passed by the Hon'ble Supreme Court in the above case.

5. In the light of the submission made by the learned counsel appearing for the parties, the cause exposed by the petitioners is with regard to providing adequate number of Appellate Tribunal under the provisions of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 along with Allied Rules. Having gone through the observation made by the Hon'ble Supreme Court in the said case, wherein suggestions have been put forth by the learned ASG and learned Amicus Curie, therein, the Hon'ble Supreme Court at paragraphs 9 and 10 held as under:

"9. We are pleased to note the positive and forthcoming response of UoI to the suggestions of the learned Additional Solicitor General and the learned amicus curiae. Having taken note of the urgent need to address the abject conditions prevailing in the Tribunals, UoI, has agreed to:

9.1. Provide adequate infrastructure to DRTs/DRATs on the following basis:

9.1.1. If sufficient space as per requirement is available in the government building, then space from the department concerned will be allotted on a permanent basis.

9.1.2. If space is not available in the Government building but sufficient space is available in public sector undertakings' buildings, then DRTs/DRATs may move to the same on a permanent lease/rental basis.

9.1.3. If 9.1.1 and 9.1.2 are not possible, then suitable land may be purchased for construction of a building, or a suitably constructed building may be purchased from public authorities. This may be completed in a phased manner. In the meantime, DRTs and DRATs may continue at their present locations or hire alternative suitable space as per norms.

9.1.4. Further, on the basis of a spot study conducted by the Department of Financial Services on 11-12-2011, the existing space authorisation of 5000 sq ft for DRTs and 3600 sq ft for DRATs was examined. In light of the study and requirements of additional facilities, the same has been increased to 7200 sq ft and 4500 sq ft respectively. In case more than one DRT is accommodated in one building, space would be saved for common facilities such as bar room, consultation chamber, reception, canteen, washrooms, etc. In such a case, the space requirements for the second and third DRT (if located in the same building) may be around 6000 sq ft and 5500 sq ft respectively.

9.1.5. Preference is to be given to buildings where parking facility is provided either within the building premises or in the vicinity.

9.2. Consider the feasibility of establishing more DRTs/DRATs and redefining the jurisdiction of some DRTs on the basis of data showing pendency of cases and existing workload of all the DRTs and DRATs.

9.3. Fill all anticipated vacancies for the posts of senior officers, as and when they arise, wi

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