'Finance Ministry Can't Treat DRT Officers As Subordinates': Supreme Court Reprimands Centre For Asking DRTs To Collect Data

The Supreme Court on Monday (October 21) sought the explanation of the Ministry of Finance for asking the Debts Recovery Tribunals to collect data on various aspects, including the amount recovered on the basis of their orders.

The Court orally said that the Ministry cannot treat the judicial staff of the DRT as its subordinates. A bench comprising Justices Abhay S Oka and Augustine George Masih came across this issue while hearing a matter related to lawyers' strike at DRT Vishakhapatnam. Earlier, the DRT Vishakhattanam had informed the Court that certain applications were adjourned since the staff were occupied with the data collection work mandated by the Ministry. Taking serious exception to this, on September 30, the Court had asked the Finance Ministry to file an affidavit.

Today, the bench was further dismayed to note the justification provided by the Ministry. Not just the DRT Vishakhapatnam but all DRTs across the country were asked to collect data. The bench noted that the data was sought on the number of cases with DRT amounting to Rs. 100 crores and above, total number of new cases filed, amount recovered etc.

"Is DRT expected to have the data of the amount recovered? How DRT will know? What kind of data you have sought? How DRT will tell you how much amount bank has recovered based on the orders? Will they go to every bank and find out how much amount borrowed has been recovered pursuant to the orders of the DRT?" Justice Oka asked.

The bench was taken aback to note that the email was sent by the Ministry to all DRTs on September 9 and the data was sought by September 12, within three das.

"You are treating judicial staff as if they are your subordinates. We expect an apology from the government. Such extent of collection of data is sought within 3 days. If you want data to be collected additional staff as required by DRT should be provided. This will not be tolerated. Some of them are judicial officers you are treating them as subordinates," Justice Oka said.

The counsel appearing for the Ministry said that the data was sought for the purpose of holding a meeting with all stakeholders on how to improve the system. The bench said that if the Ministry wanted data, it should deploy additional resources, instead of tasking the DRT officials with it.

In the order, the bench recorded :

"The Ministry owes an explanation for calling upon DRT to collect such a huge data within such a short time. We are surprised to know that even DRTs were entrusted with the responsibility of collecting data regarding the amount recovered on the basis of their orders.

We wonder how this exercise could have been done by DRTS. By filing an affidavit dated 17th October 2024 the Under Secretary of the department of Finance has justified the action on the part of the ministry. "

The bench was also not impressed with the attempt of the Ministry to justify its action based on certain purported oral directions issued by the Supreme Court on December 15, 2023. Even assuming such oral instructions were issued, the Ministry started the excercise only after nine months, the bench stated in the order.

"We are not at all satisfied with the explanation offered by responder number 1. The secretary of the concerned department shall look into the entire thing after going through the orders of this court and other material on record and ensure that a proper affidavit is filed in response to order dated 30th September 2024.

Whether Ministry can call upon DRT to collect such huge data is another matter, but if such data is required to be collected it is obvious that additional hands will have to be provided by the Ministry to the DRTs," the bench observed.

After the order was dictated, Justice Oka said, "It's good that the attention of the court was gone to this otherwise this practice would have continued."

Case no. – Special Leave to Appeal (C) No. 11029/2024

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