Question
Under Section 21 of the RDDBFI Act, 1993, what
percentage of the debt amount (as determined by the DRT) must a person deposit with the Debt Recovery Appellate Tribunal (DRAT) before their appeal can be entertained?Solution
Explanation:
Section 21 of the RDDBFI Act, 1993 is a crucial provision that imposes a mandatory pre-deposit condition as a prerequisite for entertaining an appeal before the DRAT. It states that where an appeal is preferred by any person from whom the debt is due, such appeal shall not be entertained unless the person has deposited 50% of the amount of debt as determined by the DRT under Section 19. The critical proviso to Section 21 allows the DRAT to waive or reduce this deposit amount for reasons to be recorded in writing. This provision serves the purpose of deterring frivolous appeals while also ensuring that genuine hardship cases have a safety valve through the proviso.
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