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Section 35: Power to remove difficulties

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

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1993
Section 34 All 37 Sections of Recovery of Debts and Bankruptcy Act, 1993 Section 36

Legal Commentary & Landmark Judgments: Section 35

Section 35 vests the Central Government with broad delegated power to make rules, by notification, to carry out the operational and procedural provisions of the Act.

  • General Delegated Rule-Making Power: Sub-section (1) empowers the Central Government to make rules, by notification, to carry out the provisions of the Act across the entire territory of India.
  • Enumerated Rule-Making Fields: Sub-section (2) specifies key matters for subordinate legislation, including: salaries, allowances, and service conditions of Presiding Officers and Chairpersons; procedural rules under Section 19; forms and fees for applications and appeals; electronic filing systems; and procedures governing Recovery Officers.
  • Subordination to Statutory Framework: Subordinate rules framed under Section 35 must strictly conform to the primary statute and cannot abrogate basic judicial standards, alter substantive rights, or restrict access to justice.
Key Landmark Precedents:
  • Union of India v. Delhi High Court Bar Association (2002) 4 SCC 275: The Supreme Court upheld the validity of the Debts Recovery Tribunal (Procedure) Rules, 1993 and DRAT (Procedure) Rules, 1994 framed under Section 35, ruling that delegated procedural rules properly facilitate summary commercial adjudication without compromising natural justice.
  • Rojer Mathew v. South Indian Bank Ltd. (2020) 6 SCC 1: The Constitution Bench struck down rules framed under delegated legislative powers that interfered with the qualifications, selection process, and tenure of tribunal judges, holding that Section 35 rules cannot override constitutional independence.
  • Central Bank of India v. State of Kerala (2009) 4 SCC 94: The Supreme Court held that rules framed under Section 35 must be construed in harmony with the parent Act and cannot enlarge the substantive recovery powers beyond the statutory boundary.
Courtroom Practice & Strategic Litigation Guidance:

When litigating before the DRT or DRAT, always cross-reference the relevant rules framed under Section 35: the Debts Recovery Tribunal (Procedure) Rules, 1993, the Debts Recovery Appellate Tribunal (Procedure) Rules, 1994, and the Debts Recovery Tribunals (Refund of Court Fee) Rules, 2013. If a debt is settled through compromise prior to the commencement of evidence, move an application under the Refund Rules to obtain a refund of up to 50% of the court fee deposited.

Section 34 All 37 Sections of Recovery of Debts and Bankruptcy Act, 1993 Section 36