📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Under Section 21, what percentage of the debt amount

      must the debtor-appellant deposit before the DRAT entertains an appeal? What is the minimum the DRAT can reduce it to?
      A 75%; minimum 50% Correct Answer Incorrect Answer
      B 25%; minimum 10% Correct Answer Incorrect Answer
      C 100%; minimum 50% Correct Answer Incorrect Answer
      D 50%; minimum 25% (with reasons to be recorded in writing) Correct Answer Incorrect Answer
      E 75%; minimum 25% Correct Answer Incorrect Answer

      Solution

      Section 21 (amended by the 2016 Act, reducing from 75% to 50%) provides that an appeal by the debtor shall not be entertained unless the appellant has deposited fifty per cent. of the debt determined by the Tribunal. The proviso empowers the DRAT to reduce this deposit, but not below twenty-five per cent., and reasons must be recorded in writing. The permissible range is therefore 25% to 50%. This pre-deposit requirement balances two competing interests: preventing frivolous appeals that delay recovery, and ensuring the constitutional right to appeal is not made illusory for debtors with genuine grievances against Tribunal orders.

      Practice Next
      More Banking Related Laws Questions
      ask-question