AMBA seeks Debt Recovery Tribunal in Manipur

IMPHAL, Dec 5 : The All Manipur Bar Association (AMBA) has appealed to the Secretary of Department of Financial Services to initiate necessary steps for establishing a Debt Recovery Tribunal (DRT) in the State of Manipur as soon as possible.
A representation signed by Ningombam Angothoiba Meitei, secretary, AMBA has stated that the absence of a DRT in Manipur has severely affected the citizens who have to travel to Guwahati DRT (Assam) which covers the seven North Eastern States in terms of jurisdiction.
In comparison, the Government of India has set up 39 DRTs and 5 Debt Recovery Appellate Tribunals (DRATs) in the entire country, across different regions and covering multiple States, pointed out AMBA.
In Manipur, the lack of easy physical access to justice has affected individuals or groups of individuals including litigants such as banks and borrowers. They face substantial challenges like high cost and time involved in travelling long distances to the assigned DRT location, resulting in significant economic hardships.
The lack of an accessible and efficient local DRT also hinders the effective implementation of key financial recovery laws like the Recovery of Debt and Bankruptcy Act (RDB Act) and SARFAESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002), thereby undermining the goal of robust financial system, said AMBA.
Shedding light on Manipur's status as one of the poorest States in the Indian subcontinent, AMBA said it has been severely affected by the COVID 19 pandemic and the crisis since May 3, 2023.
Saying that the economy has collapsed, it added that people who run businesses to earn their livelihood have been driven to poverty as their businesses have failed.
In view of such circumstances, AMBA has requested the Secretary of the Department of Financial Services under the Ministry of Finance to establish a DRT in the State.