Rajasthan High Court Sets Aside DRT Order Rejecting Securitisation Plea on Technical Grounds

The Rajasthan High Court set aside a Debt Recovery Tribunal’s (DRT) order that rejected a securitisation application (SA) because not all borrowers had signed it.

Justices Anoop Kumar Dhand ruled that when a Vakalatnama is filed by a duly appointed representative and the application is entertained with an interim order, rejecting it later on such a technical ground violates justice. 

The case involved multiple borrowers on a joint loan, where one signed the SA and others signed the Vakalatnama.

The Court directed the DRT to decide the case on merit within two months.

[Kishan Lal Sharma & Ors. v Laxmi India Fineleasecap Pvt Ltd]