MARIMUTHU P (Legal Practioner) 02 July 2020

Recovery suit by bank

Is it barred by any law to file recovery suits above Rs.20 lakhs before Civil Courts?

4 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 02 July 2020

Record shows that suit transaction is entirely covered by the Article 19of the Limitation Act which provides the limitation period for recovery of the amount of 3 years which is the time from which period begins to run.

Dr J C Vashista (Advocate) 03 July 2020

Yes, any amount above Rs. 20 lakh falls in the jurisdiction of Debt Recovery Tribunal and civil courts are barred under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Act, 2002 (Act 54 of 2002).

1 Like

Adv Keches Shilwante (Partner @ Legal Biceps) 03 July 2020

In 2018 Central government has raised the pecuniary limit from Rs 10 lakh to Rs 20 lakh for filing application for recovery of debts in the Debts Recovery Tribunals.As a result, any bank or financial institution or a consortium of banks or financial institutions cannot approach DRTs if the amount due is less than Rs 20 lakh.