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

Sundaram Bank Ltd. files an application against a defaulting borrower, Kaveri Textiles Pvt. Ltd., to recover a debt due to the bank. Under the Recovery of Debts and Bankruptcy Act, 1993, which authority exercises the jurisdiction, powers and authority to entertain and decide such an application?

The application goes to a Debts Recovery Tribunal. Section 17(1) gives the Tribunal jurisdiction to entertain and decide applications from banks and financial institutions for recovery of debts due to them. The Appellate Tribunal hears only appeals, and civil courts are barred.

  1. AA Debts Recovery TribunalCorrect
  2. BThe Debts Recovery Appellate Tribunal
  3. CA civil court of the district
  4. DThe Registrar of Companies

Explanation

Section 17(1) vests the Tribunal with jurisdiction to entertain and decide applications from banks and financial institutions for recovery of debts due to them. The Appellate Tribunal only hears appeals against Tribunal orders under section 17(2), so it is not the forum for the original application.

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