In this Act, unless the context otherwise requires,—
(a) such right, title or interest upon tangible asset, retained by the bank or financial institution as owner of the property, given on hire or financial lease or conditional sale which secures the obligation to pay any unpaid portion of the purchase price of the asset or an obligation incurred or any credit provided to enable the borrower to acquire the tangible asset; or
(b) such right, title or interest in any intangible asset or licence of any intangible asset, which secures the obligation to pay any unpaid portion of the purchase price of the intangible asset or the obligation incurred or any credit extended to enable the borrower to acquire the intangible asset or licence of intangible asset;]
(c) any debt or any right to receive payment of money, whether secured or unsecured;
(d) receivables, whether existing or future;
(e) intangible assets, being know-how, patent, copyright, trade mark, licence, franchise or any other business or commercial right of similar nature, as may be prescribed by the Central Government in consultation with Reserve Bank;]
(ea) "[ Chairperson" means a Chairperson of an Appellate Tribunal appointed under section 9;] [Inserted by Act 1 of 2000, Section 3 (w.r.e.f. 17.1.2000).]
(f) "corresponding new bank" shall have the meaning assigned to it in clause (da) of section 5 of the Banking Regulation Act, 1949 ( 10 of 1949 );
(g) "[ debt" means any liability (inclusive of interest) which is claimed as due from any person by a bank or a financial institution or by a consortium of banks or financial institutions during the course of any business activity undertaken by the bank or the financial institution or the consortium under any law for the time being in force, in cash or otherwise, whether secured or unsecured, or assigned, or whether payable under a decree or order of any civil Court or any arbitration award or otherwise or under a mortgage and subsisting on, and legally recoverable on, the date of the application [and includes any liability towards debt securities which remains unpaid in full or part after notice of ninety days served upon the borrower by the debenture trustee or any other authority in whose favour security interest is created for the benefit of holders of debt securities or] [Substituted by Act 1 of 2000, Section 3, for Clause (g) (w.r.e.f. 17.1.2000).] ;]
(ga) "debt securities" means debt securities listed in accordance with regulations made by the Securities Exchange Board of India under the Securities and Exchange Board of India Act, 1992;] [Inserted by Act No. 44 of 2016.]
(h) "financial institution" means
(i) a public financial institution within the meaning of section 4-A of the Companies Act, 1956 ( 1 of 1956 );
(ha) "financial lease" means a lease under a lease agreement of tangible asset, other than negotiable instrument or negotiable document, for transfer of lessor's right therein to the lessee for a certain time in consideration of payment of agreed amount periodically and where lessee becomes the owner of the such assets at the expiry of the term of lease or on payment of the agreed residual amount, as the case may be;] [Inserted by Act No. 44 of 2016.]
(i) "notification" means a notification published in the Official Gazette;
(ia) [ the securitisation company or reconstruction company which has obtained a certificate of registration under sub-section (4) of section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ( 54 of 2002 );] [Inserted by the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2004 ( 30 of 2004 ), Section 19 (w.e.f. 11.11.2004).]
(ib) [ a debenture trustee registered with the Board and appointed for secured debt securities;] [Inserted by Act No. 44 of 2016.]
(ii) such other institution as the Central Government may, having regard to its business activity and the area of its operation in India, by notification, specify;
(j) "prescribed" means prescribed by rules made under this Act;
(ja) "[ Presiding Officer" means the Presiding Officer of the Debts Recovery Tribunal appointed under sub-section (1) of section 4;] [Inserted by Act 1 of 2000, Section 3 (w.r.e.f. 17.1.2000).]
(jb) "property" means- [Inserted by Act No. 44 of 2016.]
(k) "Recovery Officer" means a Recovery Officer appointed by the Central Government for each Tribunal under sub-section (1) of section 7;
(l) "Regional Rural Bank" means a Regional Rural Bank established under section 3 of the Regional Rural Banks Act, 1976 ( 21 of 1976 );
(la) "secured creditor" shall have the meaning as assigned to it in clause (zd) of sub-section (1) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; [Inserted by Act No. 44 of 2016.]
(lb) "security interest" means mortgage, charge, hypothecation, assignment or any other right, title or interest of any kind whatsoever upon property, created in favour of any bank or financial institution and includes-
(m) "State Bank of India" means the State Bank of India constituted under section 3 of the State Bank of India Act, 1955 ( 23 of 1955 );
(n) "subsidiary bank" shall have the meaning assigned to it in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 ( 38 of 1959 );
(o) "akn-section"
Legal Commentary & Landmark Judgments: Section 2
Section 2 provides the statutory definitions of debt, financial institution, and bank governing the jurisdiction of Debt Recovery Tribunals (DRT).
Section 2 defines the jurisdictional thresholds of debt, bank, and financial institution, establishing the legal boundary for summary recovery proceedings before the DRT.
Section 2(g) ensures that all facets of modern commercial and banking indebtedness are subject to summary adjudication before the DRT, preventing banks from being forced into fragmented multi-forum litigation.