In a significant development, the Allahabad High Court has expressed concern over the repeated issuance of unreasoned and abrupt orders by the Debt Recovery Tribunal (DRT) in Lucknow. The Court has urged the Ministry of Finance to consider providing proper training to the officers posted at the DRT to ensure the tribunal functions effectively.
The case titled Vimla Kashyap and 2 Others v. Union of India Through Secretary, Ministry of Financial Services, New Delhi and 3 Others (Article 227 No. 2946 of 2025) was heard by Justice Pankaj Bhatia. The petition challenged the DRT’s order dated May 2, 2025, which rejected the petitioners' plea for interim relief.
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“This court is noticing, similar orders passed by the DRT Lucknow in various matters, as such, let a copy of this order be sent to the Ministry of Finance, to consider imparting training to the officer concerned so that the functioning of the DRT for which it was established can go on smoothly,” stated Justice Bhatia.
Counsel for the petitioners argued that although the DRT’s order could be appealed, the way it was passed reflected poorly on the tribunal's functioning. The order had cited the petitioners’ arguments and the responses from the other side, some of which were factually incorrect, but ultimately dismissed the interim relief request without offering any reasoning.
“A reasoned order is the heart and soul of any judicial order,” emphasized the counsel, pointing out that no reasons were cited in the DRT's dismissal.
Even the respondent’s counsel acknowledged that the DRT’s decision lacked the expected reasoning that should accompany a judicial order. The High Court, after reviewing the order, concluded that it reflected a “total non-application of mind” and highlighted the lack of proper training among DRT officers.
Consequently, the Court quashed the DRT's order and remanded the matter back to the Tribunal with directions to pass a fresh decision in accordance with the law, after hearing both sides. It also directed the DRT to resolve the matter within four weeks, and until then, no coercive action should be taken against the petitioner.
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To address the broader issue, the Court directed its Senior Registrar and the counsel for the Union of India to forward a copy of the order to the Ministry of Finance, recommending appropriate steps for officer training at the DRT.
Case Title: Vimla Kashyap And 2 Others v. Union Of India Thru. Secy. Ministry Of Financial Services New Delhi And 3 Others [MATTERS UNDER ARTICLE 227 No. - 2946 of 2025]
Counsel for Petitioner :- Alok Saxena, Paras Pradhan
Counsel for Respondent :- Ashwani Kumar Singh, Abhishek Khare, Parul Sharma
