IN THE SUPREME COURT OF INDIA
CIVIL ORIGINAL JURISDICTION
WRIT PETITION (CIVIL) NO. 901 OF 2014
KESHAVLAL KHEMCHAND AND SONS PVT. LTD.
& OTHERS … Petitioners
UNION OF INDIA & OTHERS … Respondents
Recovery of money from a debtor by resorting to the filing of a suit takes painfully long time in this country, for various reasons. Huge amounts of money are lent by various banks and other financial institutions. Speedy recovery of the monies due to such institutions is an important element determining the efficiency not only of such institutions but also becomes an important factor for the financial health of the country. In order to facilitate banks and financial institutions (herein after collectively referred to as “CREDITORS” for the sake of convenience)to speedily recover the monies due to them from the borrowers, Parliament made a law called ‘The Recovery of Debts due to Banks and Financial Institutions Act, 1993’ (51 of 1993) under which banks and financial institutions could approach a tribunal constituted under the said Act. It deals exclusively with the claims for the recovery of the monies due from the borrowers to the CREDITORS. Apart from creating such an exclusive forum, the Act also provided for a more simpler procedure for the adjudication of the legality of the claims brought before it by the CREDITOR and a procedure for speedy recovery of sums so adjudicated….read more