Section 17 of RDDB Act : Section 17: Jurisdiction, Powers And Authority Of Tribunals

Explanation using Example

Imagine a scenario where XYZ Bank has provided a loan to Mr. John Doe. Mr. Doe has failed to repay the loan despite several reminders and notices from the bank. XYZ Bank decides to take legal action to recover the outstanding debt. According to Section 17(1) of The Recovery of Debts and Bankruptcy Act, 1993, XYZ Bank can approach the Debt Recovery Tribunal (DRT) to file an application for the recovery of the debt owed by Mr. Doe.

In another instance, if Mr. Doe's business is facing insolvency and XYZ Bank needs to recover its debt within the proceedings of the Insolvency and Bankruptcy Code, 2016, then as per Section 17(1A)(a), the DRT has the jurisdiction to entertain and decide such applications as well.

Furthermore, if XYZ Bank is located in a different district, thanks to Section 17(1A)(b), the DRT can hold circuit sittings at the district headquarters closer to the bank, making it more convenient for XYZ Bank to attend the proceedings.

If XYZ Bank is not satisfied with the decision of the DRT, it has the right to appeal. According to Section 17(2), the bank can file an appeal with the Appellate Tribunal against the order of the DRT.

Similarly, in the context of insolvency proceedings, if XYZ Bank wants to appeal against an order made by the Adjudicating Authority under the Insolvency and Bankruptcy Code, Section 17(2A) empowers the Appellate Tribunal to hear such appeals.