DRAT Not a Mere Adjudicatory Body, Can Recall Orders: Patna High Court

The Patna High Court recently held that the Debts Recovery Appellate Tribunal (DRAT) is not merely an adjudicatory body with limited powers and can recall or restore appeals dismissed for procedural non-compliance.

The Court observed that dismissal of an appeal for failure to comply with the mandatory pre-deposit requirement under Section 21 of the Recovery of Debts and Bankruptcy Act, 1993, is procedural in nature and does not extinguish the statutory right to appeal.

The Division Bench further clarified that DRAT has powers similar to a civil court under Section 22(2) of the Act, enabling it to set aside default orders to ensure matters are decided on merits and complete justice is done.

[M/s Tirupati Storage & Allied Pvt. Ltd. v. UCO Bank]