Section 8 of RDDB Act : Section 8: Establishment Of Appellate Tribunal

Explanation using Example

Imagine a scenario where a business, "XYZ Enterprises," has taken a loan from "ABC Bank." Due to financial difficulties, XYZ Enterprises is unable to repay the loan, and ABC Bank decides to take legal action to recover the debt. After the case is heard by the Debts Recovery Tribunal (DRT) and a decision is made in favor of ABC Bank, XYZ Enterprises decides to appeal against the decision.

In accordance with Section 8(1) of The Recovery of Debts and Bankruptcy Act, 1993, the Central Government has established an Appellate Tribunal known as the Debts Recovery Appellate Tribunal (DRAT). XYZ Enterprises files an appeal with the DRAT to challenge the DRT's decision. The DRAT, as per the notification by the Central Government, has the jurisdiction and authority to hear the appeal and make a ruling on the matter.

Additionally, if XYZ Enterprises were involved in insolvency proceedings under the Insolvency and Bankruptcy Code, 2016, then as per Section 8(1A), the appeal against the order made by the Adjudicating Authority in such a case would also be heard by the appropriate Debt Recovery Appellate Tribunal established for this purpose.

The Central Government, as per Section 8(2), would have specified which DRAT has jurisdiction over the appeal filed by XYZ Enterprises, ensuring that the appeal is heard by the appropriate tribunal.

Lastly, if there were a shortage of chairpersons, as per Section 8(3), the Central Government could authorize the Chairperson of one DRAT to also function as the Chairperson of another DRAT to ensure the continuity of judicial processes.