In exercise of the powers conferred by clause ccd of sub section 2 of section 36 of the Recovery of Debts and Bankruptcy Act

## Report on the Debts Recovery Tribunals and Debts Recovery Appellate Tribunals Electronic Filing Amendment Rules, 2021 **1. Executive Summary:** This report analyzes the Debts Recovery Tribunals and Debts Recovery Appellate Tribunals Electronic Filing Amendment Rules, 2021 (hereinafter referred to as "the Amendment Rules, 2021"), which amends the Debts Recovery Tribunals and Debts Recovery Appellate Tribunals Electronic Filing Rules, 2020. The core purpose of this amendment is to mandate electronic filing of pleadings in specific cases before Debts Recovery Tribunals (DRTs) and Debts Recovery Appellate Tribunals (DRATs). The key finding is that the amendment enforces mandatory e-filing for cases involving debt recovery of one hundred crore rupees and above, likely aiming to improve efficiency and transparency in these high-value cases. **2. Introduction:** This report aims to provide a comprehensive overview of the Debts Recovery Tribunals and Debts Recovery Appellate Tribunals Electronic Filing Amendment Rules, 2021, based solely on the provided policy text. The analysis will focus on the changes introduced by the amendment and their potential implications for stakeholders. **3. Policy Overview:** * **Original Policy:** The Amendment Rules, 2021, amends the Debts Recovery Tribunals and Debts Recovery Appellate Tribunals Electronic Filing Rules, 2020. * **Core Objective(s):** Based on the text, the primary objective is to mandate electronic filing of pleadings for debt recovery cases exceeding a specified financial threshold (one hundred crore rupees). This suggests an aim to streamline processes, enhance accessibility, and potentially improve data management within the DRT/DRAT system for high-value claims. **4. Background and Rationale:** The amendment's focus on mandatory e-filing for high-value debt recovery cases suggests that the existing e-filing rules, while available, may not have been sufficiently utilized for larger claims. The rationale behind the amendment is likely to ensure greater adoption of electronic filing in significant cases, potentially addressing concerns related to efficiency, transparency, and data integrity in the recovery process for substantial debts. **5. Key Provisions / Changes:** * **Specific Part of Original Policy Changed:** The amendment specifically modifies subrule (2) of rule 3 of the Debts Recovery Tribunals and Debts Recovery Appellate Tribunals Electronic Filing Rules, 2020. * **New Rule/Provision:** The amendment introduces a proviso stating: "Provided that e filing of pleading shall be mandatory where the debt to be recovered, as mentioned in the application, is rupees one hundred crore and above." * **Difference/Effect of the Change:** Previously, e-filing was presumably optional. This amendment now mandates e-filing for applications where the debt to be recovered is rupees one hundred crore and above. This makes electronic filing compulsory for high-value cases, moving away from a voluntary system. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders directly affected by this amendment include: * **Banks and Financial Institutions:** These entities are frequently involved in debt recovery cases of this magnitude. * **Debtors:** Individuals or organizations against whom recovery proceedings are initiated for debts of one hundred crore rupees and above. * **Legal Professionals:** Lawyers and advocates representing both creditors and debtors in DRT/DRAT proceedings. * **Debts Recovery Tribunals (DRTs) and Debts Recovery Appellate Tribunals (DRATs):** The tribunals themselves, as they will need to adapt their procedures and systems to accommodate mandatory e-filing. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The notification is issued by the Ministry of Finance, Department of Financial Services. The DRTs and DRATs are responsible for implementing the amended rules. * **Timelines or Procedures:** The amendment came into force on the date of its publication in the Official Gazette, which is July 22, 2021. While the text doesn't specify detailed procedures, the DRTs and DRATs will need to establish and communicate clear guidelines for mandatory e-filing, including acceptable formats, security protocols, and methods for addressing technical issues. * **Amendment Specific Implementation:** The tribunals will specifically need to establish mechanisms to identify cases falling under the "one hundred crore and above" threshold and ensure compliance with the mandatory e-filing requirement. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of this amendment include: * **Increased Efficiency:** E-filing is expected to expedite the filing and processing of pleadings, potentially reducing delays in debt recovery cases. * **Enhanced Transparency:** Electronic records can improve accessibility and transparency for all stakeholders. * **Improved Data Management:** Centralized electronic filing can facilitate better data collection, analysis, and reporting, supporting more informed decision-making. * **Reduced Costs:** Although not explicitly stated, a likely benefit of e-filing is lower administrative overhead for tribunals and lower costs incurred by those filing, as they don't have to print or transport documents to the courts. **9. Conclusion:** The Debts Recovery Tribunals and Debts Recovery Appellate Tribunals Electronic Filing Amendment Rules, 2021, represents a significant step towards digitizing the debt recovery process in India. By mandating e-filing for high-value cases, the amendment aims to enhance efficiency, transparency, and data management within the DRT/DRAT system. The success of this amendment will depend on effective implementation and clear communication of procedures to all stakeholders, ensuring a smooth transition to mandatory electronic filing for eligible cases.

Key Entities Referenced