RDDBFI Section 17: Jurisdiction, powers and authority of Tribunals

Jurisdiction, powers and authority of Tribunals

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) A Tribunal shall exercise, on and from the appointed day, the jurisdiction, powers and authority to entertain and decide applications from the banks and financial institutions for recovery of debts due to such banks and financial institutions.

(2) An Appellate Tribunal shall exercise, on and from the appointed day, the jurisdiction, powers and authority to entertain and decide appeals against any order made, or deemed to have been made, by a Tribunal under this Act.

Statutory Defined Terms in this Section: (Click any term for official legal definition)

Bar of Civil Court Sec 18 Application (OA) Sec 19 Appeal to DRAT Sec 20

Legal Commentary & Landmark Judgments: Section 17

Section 17 confers exclusive jurisdiction, powers, and authority upon Debt Recovery Tribunals to entertain and decide applications from banks and financial institutions for recovery of debts.

Statutory Powers & Jurisdiction: Section 17(1) vests the DRT with exclusive jurisdiction to entertain and decide applications from banks and financial institutions for recovery of debts due to such banks.
Core Legal Standard: The statutory pecuniary threshold was enhanced by notification to ₹20 Lakhs.

Section 17(2) vests the Debts Recovery Appellate Tribunal (DRAT) with jurisdiction to entertain appeals against DRT orders.

Key Landmark Precedents:

Allahabad Bank v. Canara Bank (2000) 4 SCC 406: The Supreme Court held that the jurisdiction of the DRT under Section 17 is exclusive and plenary; the Company Court exercising liquidation jurisdiction has no power to stay DRT proceedings or require leave under Section 446 of the Companies Act.
State Bank of India v. Ranjan Chemicals Ltd. (2007) 1 SCC 97: Held that the DRT has full jurisdiction under Section 17 to entertain and decide counter-claims and set-offs raised by borrowers in response to recovery applications.

Legal Commentary:

Section 17 establishes the DRT as a specialized judicial forum replacing sluggish civil courts. The exclusive jurisdiction of the DRT ensures that high-value bank claims are resolved under specialized summary procedures.