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CS Professional · Insolvency and Bankruptcy - Law and Practice · Debt Recovery and Securitization

During hearing of a section 17 application by Narmada Exports, the DRT wants to examine a bank officer on oath, call for loan documents, and take evidence by affidavit. Which statement about the DRT's procedural powers under the Recovery of Debts and Bankruptcy Act, 1993 is correct?

The DRT is not bound by the Code of Civil Procedure and is guided by natural justice, but it has civil court powers for summoning witnesses, requiring documents, taking affidavit evidence and deciding ex parte. Section 22 of the RDB Act provides this, and SARFAESI section 17(7) applies it.

  1. AThe DRT is strictly bound by the Code of Civil Procedure, 1908 and has no powers of its own
  2. BThe DRT is not bound by the Code of Civil Procedure, 1908, is guided by natural justice, yet has civil court powers on matters such as summoning, discovery and affidavitsCorrect
  3. CThe DRT can receive only oral evidence and cannot require production of documents
  4. DThe DRT cannot dismiss an application for default or decide it ex parte

Explanation

Section 22 of the RDB Act provides that the Tribunal is not bound by the Code of Civil Procedure but is guided by natural justice, and has civil court powers for summoning and examining on oath, discovery and production of documents, receiving evidence on affidavits, and dismissing for default or deciding ex parte. Section 17(7) of SARFAESI applies this procedure.

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