Bill to establish tribunals introduced in Assembly

Jammu, Jan 18 (UNI) Jammu and Kashmir Minister for Tourism Mohammad Dilawar Mir today introduced a Bill in Legislative Assembly to provide for establishment of special tribunals for expeditions adjudication and recovery of debts due to banks and financial institutions in the state.

A Committee on the financial system headed by M Narasimhan has considered setting up of the Tribunal with special powers for adjudication of such matters and speedy recovery of debts due to the banks and financial institutions- currently facing considerable difficulties in recovering loans and enforcement of securities charged with them- critical to the successful implementation of the financial sector reforms.

Mr Mir said the recovery of Debts due to Banks and Financial Institutions Act, 1993 was passed by Parliament in 1993. This Act was made applicable all over India except Jammu and Kashmir.

Under the Act, the State Government was empowered to establish Debt Recovery Tribunals and Appellate Tribunals for speedy adjudication and recovery of debts.

He said another Act, 'the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act' was enacted in 2002. Under this Act, the aggrieved borrower can appeal to Debt Recovery Tribunal constituted under Recovery of Debts due to Banks and Financial Institutions Act, 1993. This Act is applicable to all over the country including the state of J&K.

Therefore, the need was felt to have an Act in the State for establishment of debt Recovery Tribunal. The matter was taken up with Law Department, J&K Government which in turn opined to prepare legislation in this regard.

Accordingly, the Act has been drafted.

UNI