The Recovery Of Debts And Bankruptcy Act, 1993

(1) This Act may be called the Recoveryof Debts 1[and Bankruptcy] Act, 1993. (2) It extends to the whole of India except the State of Jammu and Kashmir*. (3) It shall be deemed to have come into force on the 24th day of June, 1993. (4) 2[Save as otherwise provided, the provisions of this Code] Act shall not apply where the amount of debt due to any bank orfinancial institution or to a consortium of banks or financial institutions is less than ten lakh rupees orsuch other amount, being not less than one lakh rupees, as the Central Government may, by notification,specify.

In this Act, unless the context otherwise requires, (a) Appellate Tribunal means an Appellate Tribunal established under sub-section (1) ofsection 8; (b) application means an application made to a Tribunal under section 19; (c) appointed day, in relation to a Tribunal or an Appellate Tribunal, means the date on whichsuch Tribunal is established under sub-section (1) of section 3 or, as the case may be, sub-section (1)of section 8; (d) bank means (i) banking company; (ii) a corresponding new bank; (iii) State Bank of India; (iv) a subsidiary bank; or (v) a Regional Rural Bank; 1[(vi) a multi-State co-operative bank;] (e) banking company shall have the meaning assigned to it in clause (c) of section 5 of theBanking Regulation Act, 1949 (10 of 1949); 2[(ea) Chairperson means a Chairperson of an Appellate Tribunal appointed under section 9;] (f) corresponding new bank shall have the meaning assigned to it in clause (da) of section 5 ofthe Banking Regulation Act, 1949 (10 of 1949); 3[(g) debt means any liability (inclusive of interest) which is claimed as due from any person 4[or a pooled investment vehicle as defined in clause (da) of section 2 of the Securities Contracts(Regulation) Act, 1956 (42 of 1956)] bya bank or a financial institution or by a consortium of banks or financial institutions during the courseof any business activity undertaken by the bank or the financial institution or the consortium underany law for the time being in force, in cash or otherwise, whether secured or unsecured, or assigned,or whether payable under a decree or order of any civil court or any arbitration award or otherwise or under a mortgage and subsisting on, and legally recoverable on, the date of the application 5[andincludes any liability towards debt securities which remains unpaid in full or part after notice ofninety days served upon the borrower by the debenture trustee or any other authority in whose favoursecurity interest is created for the benefit of holders of debt securities or;]] 6[(ga) debt securities means debt securities listed in accordance with regulations made by theSecurities Exchange Board of India under the Securities and Exchange Board of India Act, 1992(15 of 1992);] (h) financial institution means-- (i) a public financial institution within the meaning of section 4A of the Companies Act, 1956(1 of 1956); 7[(ia) the securitisation company or reconstruction company which has obtained a certificateof registration under sub-section (4) of section 3 of the Securitisation and Reconstruction ofFinancial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002);] 8[(ib) a debenture trustee registered with the Board and appointed for secured debt securities;] (ii) such other institution as the Central Government may, having regard to its businessactivity and the area of its operation in India, by notification, specify; 9[(ha) financial lease means a lease under a lease agreement of tangible asset, other thannegotiable instrument or negotiable document, for transfer of lessor's right therein to the lessee for acertain time in consideration of payment of agreed amount periodically and where lessee becomes theowner of the such assets at the expiry of the term of lease or on payment of the agreed residualamount, as the case may be;] (i) notification means a notification published in the Official Gazette; (j) prescribed means prescribed by rules made under this Act; 10[(ja) Presiding Officer means the Presiding Officer of the Debts Recovery Tribunal appointedunder sub-section (1) of section 4;] 11[(jb) property means-- (a) immovable property; (b) movable property; (c) any debt or any right to receive payment of money, whether secured or unsecured; (d) receivables, whether existing or future; (e) intangible assets, being know-how, patent, copyright, trade mark, licence, franchise orany other business or commercial right of similar nature, as may be prescribed by the CentralGovernment in consultation with Reserve Bank;] (k) Recovery Officer means a Recovery Officer appointed by the Central Government for eachTribunal under sub-section (1) of section 7; (l) Regional Rural Bank means a Regional Rural Bank established under section 3 of theRegional Rural Banks Act, 1976 (21 of 1976); 12[(la) secured creditor shall have the meaning as assigned to it in clause (zd) of sub-section (1)of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of SecurityInterest Act, 2002 (54 of 2002); (lb) security interest means mortgage, charge, hypothecation, assignment or any other right,title or interest of any kind whatsoever upon property, created in favour of any bank or financialinstitution and includes-- (a) such right, title or interest upon tangible asset, retained by the bank or financial institutionas owner of the property, given on hire or financial lease or conditional sale which secures theobligation to pay any unpaid portion of the purchase price of the asset or an obligation incurred orany credit provided to enable the borrower to acquire the tangible asset; or (b) such right, title or interest in any intangible asset or licence of any intangible asset, whichsecures the obligation to pay any unpaid portion of the purchase price of the intangible asset orthe obligation incurred or any credit extended to enable the borrower to acquire the intangibleasset or licence of intangible asset;] (m) State Bank of India means the State Bank of India constituted under section 3 of the StateBank of India Act, 1955 (23 of 1955); (n) subsidiary bank shall have the meaning assigned to it in clause (k) of section 2 of the StateBank of India (Subsidiary Banks) Act, 1959 (38 of 1959); (o) Tribunal means the Tribunal established under sub-section (1) of section 3.

(1) The Central Government shall, by notification, establish one ormore Tribunals, to be known as the Debts Recovery Tribunal, to exercise the jurisdiction, powers andauthority conferred on such Tribunal by or under this Act. 1[(1A)The Central Government shall by notification establish such number of Debts RecoveryTribunals and its benches as it may consider necessary, to exercise the jurisdiction, powers and authorityof the Adjudicating Authority conferred on such Tribunal by or under the Insolvency and BankruptcyCode, 2016 (31 of 2016).] (2) The Central Government shall also specify, in the notification referred to in sub-section (1), theareas within which the Tribunal may exercise jurisdiction for entertaining and deciding the applicationsfiled before it.

(1) A Tribunal shall consist of one person only (hereinafter referredto as the Presiding Officer) to be appointed, by notification, by the Central Government. 1[(2) Notwithstanding anything contained in sub-section (1), the Central Government may-- (a) authorise the Presiding Officer of any other Tribunal established under any other law for thetime being in force to discharge the function of the Presiding Officer of a Debt Recovery Tribunalunder this Act in addition to his being the Presiding Officer of that Tribunal; or (b) authorise the judicial Member holding post as such in any other Tribunal, established underany other law for the time being in force, to discharge the functions of the Presiding Officer of DebtsRecovery Tribunal under this Act, in addition to his being the judicial Member of that Tribunal.]

A person shall not be qualified forappointment as the Presiding Officer of a Tribunal unless he is, or has been, or is qualified to be, aDistrict Judge.