DRAT Transfers Cases from DRT-III to DRT-II to Ensure Fair Proceedings amid Allegations of Bias

The Debts Recovery Appellate Tribunal (DRAT), Chennai, has transferred the cases from DRT-III to DRT-II to ensure fair proceedings amid allegations of bias and unfair conduct.

The transfer petitions were filed by the applicants, who challenged the manner in which their cases were being handled by the Presiding Officer of DRT-III, Chennai. The applicants alleged that the Presiding Officer was displaying bias and prejudice against them, including hurried hearings, improper adjournments, and unfair treatment during proceedings related to two specific SARFAESI applications, SA 632/2024 and SA 524/2023. They expressed their apprehension that their cases might not be adjudicated impartially if they continued before DRT-III, given the strained relationship and alleged misconduct.

The respondents, including the bank and auction purchaser, opposed the transfer, arguing that the proceedings were conducted lawfully, and the applicants’ allegations were only aimed at delaying the process. They contended that the cases were already in advanced stages, with sale proceedings completed and sale certificates issued, and that there was no justifiable reason to transfer the cases.

The Chairperson, Justice G. Chandrasekharan, considered the submissions and noted that some personal allegations had been made against the Presiding Officer of DRT-III, which raised doubts about the impartiality of the proceedings. The Tribunal examined the remarks and reports from the Presiding Officer and found that the conduct of the Presiding Officer, particularly the undue haste and the manner of fixing dates, created an impression of bias.

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The Tribunal also observed that the grievances expressed by the applicants, including alleged unwarranted incidents and strained relationship with the Presiding Officer, warranted corrective action to uphold the principles of natural justice.

In order to prevent any further prejudice and to ensure that the applicants receive a fair hearing, the DRAT decided to transfer the two SARFAESI applications from DRT-III to DRT-II, Chennai. The Presiding Officer of DRT-III was directed to effect the transfer within one week of receiving the order. The cases are to be disposed of by the Presiding Officer of DRT-II, Chennai, expeditiously and within a period of three months, in accordance with law.

The DRAT viewed that the justice system must function transparently and impartially. The transfer was ordered to maintain the integrity of the proceedings and to dispel any perception of bias. Both parties were directed to bear their own costs, and all pending interlocutory applications were closed.

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