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Section 23: Right to legal representation and Presenting Officers

Recovery of Debts and Bankruptcy Act, 1993 • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1993
Section 22 All 37 Sections of Recovery of Debts and Bankruptcy Act, 1993 Section 24

Legal Commentary & Landmark Judgments: Section 23

Section 23 establishes the right to legal representation before the DRT and DRAT, entitling banks, financial institutions, and borrowers to appear through legal practitioners or authorized officers.

  • Statutory Right to Counsel: Sub-section (1) provides that a bank or financial institution or a defendant may authorize one or more legal practitioners or any of its officers to present their case before the Tribunal or the Appellate Tribunal.
  • Corporate and Officer Representation: Allows institutional lenders to be represented by their authorized officers, Law Officers, or recovery managers without the mandatory presence of an advocate at every procedural date.
  • Equal Protection and Adversarial Balance: Ensures that both the lending institution and the borrower have equal statutory entitlement to qualified legal representation, satisfying fundamental principles of procedural natural justice.
Key Landmark Precedents:
  • Union of India v. Delhi High Court Bar Association (2002) 4 SCC 275: The Supreme Court observed that the express right to legal representation under Section 23 guarantees that borrowers and institutions are adequately represented by counsel of their choice, safeguarding fair trial standards before specialized recovery tribunals.
  • Bar Council of India v. A.K. Balaji (2018) 5 SCC 379: The Supreme Court held that the right to practice and appear before quasi-judicial tribunals under special enactments such as the RDB Act is subject to the provisions of the Advocates Act, 1961, affirming the primacy of enrolled advocates in tribunal representation.
Courtroom Practice & Strategic Litigation Guidance:

When representing an institutional creditor or corporate borrower, ensure that a valid Vakalatnama is accompanied by a certified copy of the Power of Attorney or Board Resolution under Section 23. If an authorized officer appears in person without counsel, a specific Letter of Authority authorizing representation under Section 23(1) must be placed on the record of the Tribunal.

Section 22 All 37 Sections of Recovery of Debts and Bankruptcy Act, 1993 Section 24