Stakeholders Show Unwillingness to Mediation: DRAT Directs DRT to Expedite Hearing of Securitisation Application [Read Order]

The Debt Recovery Appellate Tribunal (DRAT), Kolkata, has disposed of an appeal, directing the debt recovery tribunal to hear the pending securitization application expeditiously.

The appeal arises from an interim order dated 24.12.2024 passed by the Debt Recovery Tribunal (DRT), Kolkata, restraining the appellant from taking further action pursuant to the Chief Judicial Magistrate’s order under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. (SARFAESI ).

During the pendency of the appeal, the tribunal attempted reconciliation, and on 11.12.2025, Senior Advocate Jaydip Kar was appointed as mediator with consent. However, when notices were issued on 22 December 2025, most stakeholders failed to appear, showing a clear unwillingness to participate in mediation.

Justice Anilkumar Srivatsava (chairperson) observed that in such a situation, mediation could not proceed and accordingly withdrew the earlier order nominating the mediator.

Counsel for the appellant, Mr. Siddhartha Banerjee and Mr. Rajeev Mait,y submitted the appeal only for a direction to the debt recovery tribunal(DRT) to decide the securitization application without delay.

The appellate tribunal directed the Debt Recovery Tribunal (DRT) Kolkata to adjudicate the pending S.A within ten weeks of receiving the order, strictly in accordance with law.

The tribunal quotes that “Without entering into the merits of the matter, I dispose of the appeal on the basis of the submissions made by the appellant with a direction upon Learned Debts Recovery Tribunal-1, Kolkata to decide the pending S.A. as expeditiously as possible, preferably within ten weeks from the date a copy of this order is placed before him, in accordance with law. “

Accordingly, the appellate tribunal made clear that this Tribunal has not gone into the merits of the appeal.

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