Minister of State for Labour and Employment and Micro, Small and Medium Enterprises in the Union government, Shobha Karandlaje recently wrote to Union Finance Minister Nirmala Sitharaman requesting the establishment of a bench of Debts Recovery Appellate Tribunal (DRAT) in Bengaluru.

In her letter dated April 17, Karandlaje noted that parties aggrieved by orders of the Debts Recovery Tribunal (DRT) in Bengaluru are presently required to approach the DRAT located in Chennai.

Karandlaje flagged the difficulties it poses for stakeholders in Karnataka, particularly given the geographical distance and associated costs in travelling to Chennai.

“This arrangement imposes significant practical hardships on stakeholders, including banks, financial institutions, borrowers, and legal practitioners based in Karnataka. The requirement to travel to Chennai entails considerable expenditure of time, cost, and logistical effort, thereby adversely affecting access to justice.”

Karandlaje further underlined Bengaluru’s status as a key financial and commercial hub, noting that a high volume of cases arises under the jurisdiction of the DRT in the city.

She observed that increasing pendency, combined with the absence of a proximate appellate forum, has contributed to delays in adjudication and enforcement of financial claims.

Karandlaje also argued that establishing a DRAT in Bengaluru would ease the burden on the existing Chennai tribunal while ensuring more efficient and timely disposal of appeals.

Linking the proposal to broader policy objectives, she wrote,

"The principle of ease of doing business and judicial accessibility, which the Government of India has consistently championed, would be greatly strengthened by such a step. A DRAT in Bengaluru would not only serve the state of Karnataka but also benefit adjoining regions, thereby decentralizing the appellate structure anp improving institutional efficiency."

Setting up a bench of DRAT in Bengaluru would advance the interests of justice, efficiency and public convenience by strengthening the institutional framework for debt recovery, the letter added.