In order to help the banks and the financial institutions in recovering their pending debts and loan amount the government related to those particular countries has implemented some of the debt recovery tribunals in their countries. These debt recovery tribunals are located in each and every location where there is a problem of the non performing assets. And even if there is a problem of non performing assets in some areas there are no debt recovery tribunals, so that particular states should get registered with the authorities of the debt recovery tribunals. Based upon the number of the cases the debt recovery tribunals are been established within the specific locations. In this debt recovery tribunal there is an availability of the presiding officers and he will have all the rights and authorities in order to pass any type of the judicial orders.
These debt recovery tribunals are been ruled by the provisions of recovery debt due to the banks as well as the financial institutions act 1993 which is known as the RDB act. The rules are been outlined and advised under the recovery of debts due to the banks and the financial institutions act 1993.
After passing out the securisation and the reconstruction of the financial assets and the enforcement of the security interests act the customers happened to be the initial applicants prior to the debt recovery tribunal. The debt recovery tribunal is having the entire powers and authorities in order to pass the complete orders in the civil court.
The tribunal is capable of hearing the cross suits, the counter claims as well as it can permit the set offs. But they are not capable of hearing the claims of the damages or else the lack of services and the illegal inattention of the lenders. The debt recovery tribunals are even having different types of principles and ethics while taking the actions on the customers. The banks and the financial institutions can make use of this debt recovery tribunals in order to recover their loans and pending debts.