The Department of Financial Services held a key colloquium in Vigyan Bhavan to tackle the backlog in debt recovery cases. Officials discussed mandatory e-filing, hybrid hearings, and a rollout of e-DRT 2.0, alongside training for tribunal staff and tighter bank oversight. The plan also prioritises high-value matters and uses Lok Adalats and mediation to speed outcomes, with BAANKNET e-auctions improving transparency.
The Finance Ministry has held talks aimed at speeding up the disposal of cases through Debt Recovery Tribunals by tightening bank oversight, prioritising high-value matters, and pushing procedural reforms. Officials also discussed using Lok Adalats as an alternate dispute resolution tool, along with capacity-building initiatives, to improve recovery outcomes and reduce delays.
Your news, in seconds
Get the Beige app — every story in 60 words, updated hourly. Free on iOS & Android.
The Supreme Court reiterated that India’s insolvency framework under the IBC is not meant for routine debt recovery. It cautioned that insolvency proceedings carry serious consequences and should be invoked only where there is genuine financial hardship, not as a convenient alternative to recover dues. The ruling is expected to shape how courts assess misuse of insolvency filings.
Swipe through stories, personalise your feed, and save articles for later — all on the app.
