'Will Summon Finance Secretary If No Positive Response By February 21': Bombay High Court On Delay In Appointment Of DRAT Chairperson

A bench of Justice Dipankar Datta and Justice MS Karnik observed that they could not "allow justice to become a casualty," and sought a positive response on the appointment of DRAT(Mumbai) by February 21.

The court had had earlier issued several directions suo-motu, for debt recovery litigants since the High Court is flooded with matters that the DRAT must decide. The court held that orders of any DRT in Maharashtra would remain stayed if an appeal is filed in the DRAT(M) along with the deposit of requisite fee and 25% of the debt due.

DRTs are constituted under the Union Finance Ministry to enable banks and other financial institutions to recover debt from borrowers in a speedy manner.

During Thursday's hearing, Additional Solicitor General Anil Singh for the Union government submitted a status report signed by the Director, Department of Financial Services (DFS), Ministry of Finance (MoF).

According to this report, the selection committee headed by a judge of the Supreme Court had on December 20, 2021, forwarded recommendations, including those for appointment of chairpersons of various DRATs including DRAT, Mumbai.

"Perusal of status report does not reveal any roadmap, in-fact, we are left to wonder if Director, DFS understood what we meant by roadmap in light of February 4 order. The only addition to the status report is to the effect that the recommendations are being evaluated/examined by the establishment officer and forwarded to Appointments Committee of Cabinet (ACC) chaired by Prime Minister... The conclusion is inescapable that after December 30, 2021, there has been no positive development in respect of such an important matter which we are seized of."

"Has the legislature conferred powers on banks to throw people out of their homes without judicial intervention?... Is this the level of seriousness of MoF, the most important Ministry after defence and home? It is as if they do not care and do not have regard for the order of High Court," the bench orally remarked.

The ASG prayed for some time to comeback with the positive response.

"We are adjourning the hearing on the clear understanding that if we are not told of any positive outcome by February 21, we would be constrained to call upon the Secretary, MoF and responsible officers attached to DoPT for facilitating the appointment of chairpersons of DRAT," said the Bench.