High Court dismisses plea filed by Bar Association challenging the shift ordered by the Ministry of Finance
In what may be a first of its kind move, due to lack of proper space and infrastructure, the Debt Recovery Tribunal (DRT) (III) could be moved out of Mumbai to Vashi, in Navi Mumbai. The Bombay High Court on Wednesday dismissed a petition filed by the DRT Bar Association, challenging the decision of the Union Ministry of Finance (MoF).
A division bench of Chief Justice Manjula Chellur and Justice M S Sonak, while dismissing the plea, also vacated the stay granted on the
decision of the MoF to shift the tribunal.
In an affidavit filed by Joint Secretary Anandrao Patil of the MoF, through Additional Solicitor general Anil Singh and Advocate Mohamedali Chunawal, before the court had earlier said that the department had requested various Central Public Sector Undertakings, for space after several buildings upon inspection were found to be unsuitable for housing DRT.
The MTNL building in Vashi is deemed to be the most suitable to house one DRT on the criteria of spare requirement, geographical location and parking facility. Thus, it is decided to let Debt Recovery Appellate Tribunal (DRAT) and Debt Recovery Tribunal 1 and 2 to remain at the present location and shift DRT 3 to Vashi.
The affidavit had further stated that as per the norms, one DRAT and two DRTS require a space of 17,700 square feet. Once DRT 3 is shifted, they will have 17,851 square feet of total space. The DRT which will shift to Vashi, will get 8,755 square feet for functioning.
The bar association had challenged the move claiming that the Ministry was spending 50% more than what was otherwise available in the vicinity of the present DRT in South Bombay. It is in the interest of justice, equity and fair play that the Ministry be restrained from taking any decision to transfer the present DRT III, it said.
Matters before the DRT and debt recovery appellate authority (DRAT), are tried under the Securitisation and Reconstruction of Financial
Assets and Enforcement of Securities Act, and the Recovery of Debts Due to Banks and Financial Institutions Act. DRT 3 has matters
covering a jurisdiction of Mumbai city areas of H to T ward and district of Thane and State of Goa. The association is still to decide
whether it would appeal against the order in the apex court.
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