Read Time: 04 minutes

The Delhi High Court on Friday issued notice on a plea challenging the provisions of Recovery of Debts and Bankruptcy Act, 1993 relating to the appointment of Recovery Officers in Debt Recovery Tribunal.

The division bench of Chief Justice DN Patel and Justice Jyoti Singh has sought response from the Centre on a plea filed by Advocate RP Agrawal seeking directions to the Centre to make provisions in the Act for execution of Recovery Certificates from presiding officers only.

The petition filed through Advocates Manisha Agrawal, Priya Modi and Varun Gupta has also sought for directions to make amendments in the eligibility criteria for appointments of Recovery Officers with regard to eligibility criteria for appointment of Recovery Officers with judicial/practice at bar experience only and regarding the composition of Selection Board for the post of Recovery Officers which should have adequate representation from the Judiciary.

The petitioner has submitted that “almost 8 Recovery officers do not possess even a degree of law. Most of the Recovery officers have come on deputation from the administrative ministries of the central Government e.g. Ministry of Science and Technology, Ministry of Labour, etc. The office of the petitioner has obtained the information of the Recovery officers, their qualifications, past experience, etc. under RTI Act. That the composition of the selection board from the post of Recovery officers is entirely controlled by the Respondent No. 1 i.e. Department of Financial services. There is no representation from the Judiciary and even from the Ministry of Law and Justice in the said selection board. It is due to the aforesaid composition of the selection board that most of the Recovery officers have been selected from various ministries of the Govt. of India out of the officials who were working in administrative capacities.”

It has further been submitted that entrustment of execution to Recovery Officers who do not possess any judicial background or at least the experience of working as Law Officers in Banks/ Financial Institutions and whose appointments are entirely controlled by the executive is against the doctrine of separation of powers.

Case Title: RP Agrawal vs UOI