Court mandates timely resolution of debt recovery cases to ensure effective enforcement of banking recovery rights.

JUDGMENT

(Dated this the 2^nd day of February, 2026)

The petitioner is a Nationalised Bank which had granted two loan facilities to the respondents. Upon default in repayment, the petitioner Bank initiated proceedings, in which the respondents filed Ext. P1 (S.A. No. 354/2025) before the Debts Recovery Tribunal-2 (DRT), Ernakulam. Along with Ext. P1, the respondents filed a stay petition as I.A. No. 2047/2025. The DRT granted a conditional stay of proceedings, directing the respondents to deposit a sum of Rs. 35 lakhs in the two loan accounts, i.e., Rs. 30 lakhs in the Cash Credit account and Rs. 5 lakhs in the Housing Loan account, out of which the first installment of Rs. 20 lakhs was to be deposited on or before 12.06.2025 and the second installment of Rs. 15 lakhs on or before 12.07.2025. The respondents complied with these conditions, and the DRT extended the stay till 18.09.2025. Thereafter, petitioner filed written statement also. On account of the repeated adjournment and delay in disposing of the S.A & stay petition, the bank is unable to recover the huge outstanding amount which is more than Rs. 1 Crores. The petitioner has approached this Court seeking a direction to dispose of the SA No.354/2025 within a time frame.

2. A report was called for from the DRT regarding the present status of S.A. No. 354/2025 and the time required for its disposal. The DRT has requested one month’s time from the next posting date to dispose of the matter.

In such circumstances, this original petition is disposed of, directing the DRT to take up SA No.354/2025 and dispose of the same, on or before 31.03.2026.

SD/-