RECOVERY OF DEBTS DUE TO BANKS AND FINANCIAL INSTITUTIONS ACT, 1993

Year : 1993

CHAPTER I
PRELIMINARY

Section -1 Short title, extent, commencement and application

(1) This Act may be called the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.

(2) It extends to the whole of India except the State of Jammu and Kashmir.

(3) It shall be deemed to have come into force on the 24th day of June, 1993.

(4) The provisions of this Act shall not apply where the amount of debt due to any bank or financial institution or to a consortium of banks or financial institutions is less than ten lakh rupees or such other amount, being not less than one lakh rupees, as the Central Government may, by notification, specify.

Section -2 Definitions

In this Act, unless the context otherwise requires,-

(a) Appellate Tribunal means an Appellate Tribunal established under sub-section (1) of section 8;

(b) Application means an application made to a Tribunal under section 19;

(c) Appointed day, in relation to a Tribunal or an Appellate Tribunal, means the date on which such Tribunal is established under sub-section (1) of section 3 or, as the case may be, sub-section

(1) Of section 8;

(d) Bank means-

(i) A banking company;

(ii) A corresponding new bank;

(iii) State Bank of India;

(iv) A subsidiary bank; or

(v) A Regional Rural Bank;

(e) Banking company shall have the meaning assigned to it in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949)

(ea) Chairperson means a Chairperson of an Appellate Tribunal appointed under section 9;

(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.

(h) Financial institution means-

(i) A public financial institution within the meaning of section 4A of the Companies Act, 1956 (1 of 1956)

(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;

(i) Notification means a notification published in the Official Gazette;

(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.

(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)

(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) Tribunal means the Tribunal established under sub-section (1) of section 3.