DRT May Entertain Plea Against Measures To Recover Secured Debts Beyond Limitation If Satisfied With The Reasons: Gauhati High Court

The Gauhati High Court ruled that the Debt Recovery Tribunal (DRT) can entertain applications under Section 17 of the SARFAESI Act beyond the limitation period if sufficient reasons are provided. The court applied the “principle of legislation by incorporation,” noting that the provisions of the Recovery of Debts and Bankruptcy Act (RDB Act) are incorporated into the SARFAESI Act. This means the Limitation Act applies to tribunal proceedings, allowing the DRT to condone delays if justified. The case involved a proprietorship firm challenging actions by the State Bank of India after its loan account was declared a Non-Performing Asset. The court emphasized that the DRT must dispose of applications in accordance with the RDB Act, which includes applying the Limitation Act provisions. This ruling clarifies that the DRT has the authority to consider delayed applications if there are valid reasons for the delay.