Govt. mandates E-filing of pleading where Debt to be recovered is above Rs. 100 crores [Read Notification]

E-filing - debt - Taxscan

The Finance Ministry, on Thursday, mandated the E-filing of pleading where debt to be recovered is above Rs. 100 crores, which will come into force from 22nd July, 2021.

The government empowered under clause (ccd) of sub-section(2) of section 36 of the Recovery of Debts and Bankruptcy Act, 1993, notified the Debts Recovery Tribunals and Debts Recovery Appellate Tribunals Electronic Filing (Amendment) Rules, 2021 to amend the Debts Recovery Tribunal and Debts Recovery Appellate Tribunals Electronic Filing Rules, 2020.

In sub-rule(2) of rule 3 of the Debts Recovery Tribunals and Debts Recovery Appellate Tribunals Electronic Filing Rules, 2020, the proviso shall be inserted, namely “Provided that e-filing of a pleading shall be mandatory where the debt to be recovered, as mentioned in the application, is rupees one hundred crores and above.”

After a party electronically files a petition or document, it is necessary to file a hard copy within seven working days along with acknowledgment of e-filing and the e-filing date will be taken as the date of making that submission.

The objective is to aid the transition of tribunals into the electronic mode of functioning, which has gathered pace during the pandemic. Electronic filing was so far optional for parties seeking debt recovery orders under the earlier rules.

The Debts Recovery Tribunals and Debts Recovery Appellate Tribunals Electronic Filing Rules, 2020 applies to e filing, display of interim or final orders or directions passed by the Tribunals on the common website in the e-DRT system and to the electronic issuance and e-service of intimations.

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