Bhopal: The Supreme Court on Tuesday issued notices to Attorney General and Solicitor General to respond by August 6 2021 on the validity and legality of notification issued by Union finance ministry through which the jurisdiction and power of Debt Recovery Tribunal (DRT) in Jabalpur was transferred to DRT Lucknow in absence of presiding officer there. The bench of Chief Justice of India Justice NV Ramana and Justice Surya Kant passed the order. The order came following a petition filed by MP State Bar Council which challenged the order of Delhi High Court on July 9 2021 through which the decision on the interim application was deferred by six weeks while issuing notices to Central government. But the prayer for interim stay of notification wasnt decided. The DRTs adjudicate disputes between banks financial institutions and borrowers arising under RDDB Act 1993 and Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002. Of late DRTs have come to play an important role in wake of sliding economy with many commercial entities shutting shop following corona pandemic. Disputes arising under Securitisation Act are a major litigation before DRTs.

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