The Supreme Court ruled last week that it was not necessary for the debt recovery tribunal to always cross-examine a witness. Evidence could be taken by affidavits also. The court made this clarification in view of the ambiguity in the Recovery of Debts Due to Banks and Financial Institutions Rules 1997.
The ruling was made while upholding the validity of the Act, which was challenged in several high courts. The Bench, comprising Justice B N Kirpal, Justice Y K Sabharwal and Justice K G Balakrishnan, said the provision regarding cross-examination of witnesses had not been happily worded. The reason for setting up the banking tribunals was to speed up disposal of claims and Parliament thought it proper to include the principles of natural justice in the law.