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      Question

      Section 3(1A) was inserted by the Insolvency and

      Bankruptcy Code, 2016. What additional jurisdiction does it confer on the DRT?
      A To hear appeals from orders of the National Company Law Tribunal (NCLT) Correct Answer Incorrect Answer
      B To exercise jurisdiction, powers, and authority as Adjudicating Authority under Part III of the Insolvency and Bankruptcy Code, 2016 Correct Answer Incorrect Answer
      C To adjudicate criminal cases related to banking fraud Correct Answer Incorrect Answer
      D To exercise jurisdiction over foreign debts owed to Indian banks Correct Answer Incorrect Answer
      E To monitor implementation of RBI's prompt corrective action framework Correct Answer Incorrect Answer

      Solution

      Section 3(1A), inserted by Act 31 of 2016 (IBC) with effect from 1-12-2019, provides that the Central Government shall by notification establish such number of Debts Recovery Tribunals and benches as it may consider necessary to exercise the jurisdiction, powers, and authority of the Adjudicating Authority under Part III of the Insolvency and Bankruptcy Code, 2016. Part III of the IBC deals with insolvency resolution and bankruptcy of individuals and partnership firms. Thus, DRTs now serve a dual role: (1) debt recovery under the RDB Act and (2) insolvency adjudication under the IBC for individuals and partnership firms. This is a landmark expansion of DRT functions.

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