36C. Definitions.—In this Chapter, unless the context otherwise requires,—
(a) “Appellate Tribunal” means the Appellate Tribunal established under section 36-I;
(b) “approved institution” means—
(i) a housing finance institution which has been granted a certificate of registration under
sub-section (5) of section 29A;
(ii) a scheduled bank;
(iii) National Housing Bank acting as trustee or otherwise in a transaction of securitisation of
housing mortgages undertaken by the National Housing Bank;
(iv) such other institutions as the Central Government may, on the recommendation of the
National Housing Bank, by notification, specify;
(c) “assistance” means any direct or indirect financial assistance granted, by an approved
institution during the course of any housing finance activity undertaken by it;
(d) “borrower” means any person to whom any assistance has been given by an approved
institution for the purposes of purchase, construction, repairs, extension or renovation of a residential
house;
(e) “dues” means any liability which is claimed as due from any person by an approved institution
and includes interest, costs, charges and other amount payable in relation thereto;
(f) “recovery officer” means an officer appointed under section 36D.
36D. Appointment of recovery officer.—(1) The Central Government may, in consultation with the
National Housing Bank, by notification appoint such persons being the officers of the approved
institution, as it may deem fit, to be recovery officers for the purpose of this Chapter who shall have such
qualifications as the Central Government may by rules made under this Act specify.
(2) The local limits within which the recovery officer shall exercise the powers conferred and perform
the duties imposed on by or under this Chapter shall be such as may be specified by the Central
Government by notification.
36E. Application to the recovery officer.—(1) Where any borrower, who is under a liability to an
approved institution under an agreement, makes any default in repayment of any assistance or any
instalment thereof or otherwise fails to comply with the terms of said agreement, then, without prejudice
to the provisions of section 69 of the Transfer of Property Act, 1882 (4 of 1882), the approved institution
may apply, to the recovery officer within the limits of whose jurisdiction the borrower actually and
voluntarily resides, or carries on business, or personally works for gain, or the cause of action wholly or
in part arises, for the sale of the property pledged, mortgaged, hypothecated or assigned to the approved
institution as security for the dues.
1. Ins. by Act 15 of 2000, s. 20 (w.e.f. 12-6-2000).
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(2) Where an approved institution, which has to recover its dues from any borrower, has filed an
application to the recovery officer under sub-section (1) and the same property is also pledged,
mortgaged, hypothecated or assigned to another approved institution or person, the other approved
institution or person may join the approved institution at any stage of the proceedings, before the final
order is passed, by making an application to that recovery officer.
(3) In the application under sub-section (1) or sub-section (2), the nature and extent of the liability of
the borrower to the approved institution or person, the grounds on which it is made shall be stated and it
be in such form and be accompanied by such documents or other evidence as may be prescribed.
36F. Procedure in respect of application under section 36E.—(1) On receipt of an application
under section 36E, if the recovery officer is of opinion that the borrower is under a liability to an
approved institution under an agreement, or has made default in repayment of the assistance or any
instalment thereof or has otherwise failed to comply with the terms of said agreement, he shall cause a
written notice of demand in such form as may be prescribed to be served on the borrower, calling upon
him to pay the amount specified in the notice within a period of ninety days from the date of service
thereof or to show cause as to why the relief prayed for should not be granted.
(2) The recovery officer may after giving the applicant and the borrower an opportunity of being
heard, pass such interim or final order, including the order for payment of interest from the date on or
before which payment of the amount is found due up to the date of realisation or actual payment, on the
application as it thinks fit to meet the ends of justice.
(3) The recovery officer may also consider and if satisfied, allow any claim of set-off or
counter-claim set up by the borrower against the approved institution or person.
(4) The recovery officer shall supply a copy of every order passed by it to the approved institution
and the borrower.
(5) The recovery officer may make an interim order (whether by way of injunction or stay or
attachment) against the borrower to debar him from transferring, alienating or otherwise dealing with or
disposing of, any property which is pledged, mortgaged, hypothecated or assigned to the approved
institution as security for the dues.
(6) The application made to the recovery officer under section 36E shall be dealt with by him as
expeditiously as possible and endeavour shall be made by him to dispose of the application finally within
six months from the date of receipt of the application.
36G. Enforcement of order of recovery officer.—(1) Where the borrower refuses or fails to
comply with the order within the time specified therein the recovery officer may, take possession of any
property pledged, mortgaged, hypothecated or assigned to the approved institution as security for any
assistance in respect of which default has been made and transfer by way of sale, lease or otherwise such
property.
(2) Any transfer by way of sale, lease or otherwise under this section shall be conducted in such
manner as may be prescribed.
(3) Any transfer of property made by the recovery officer, in exercise of its powers under
sub-section (1), shall vest in the transferee all rights in or to the property transferred, as if the transfer has
been made by the owner of the property.
(4) Where any action has been taken against the borrower under the provisions of sub-section (1), all
costs, charges, expenses which in the opinion of the recovery officer have been properly incurred by him
as incidental thereto, shall be recoverable from the borrower and the money which is received by it shall,
in the absence of any contract to the contrary, be held by it in trust to be applied firstly, in payment of
such costs, charges and expenses and secondly, in discharge of debt, due to the approved institution, and
the residue of the money so received shall be paid to the person entitled thereto.
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(5) If the dues of the approved institution, together with all costs, charges and expenses incurred by
the recovery officer, are tendered to the approved institution or to the recovery officer at any time before
the date fixed for sale or transfer, the property shall not be sold or transferred, and no further steps shall
be taken for transfer or sale of that property.
36H. Chief Metropolitan Magistrate and District Magistrate to assist recovery officer in taking
charge of property.—(1) Where any property is sold or leased in pursuance of any power conferred by
section 36E, the recovery officer may, for the purpose of taking into custody or under control any such
property, request, in writing, the Chief Metropolitan Magistrate or the District Magistrate within whose
jurisdiction any such property or other documents relating thereto may be situated or found to take
possession thereof, and the Chief Metropolitan Magistrate or as the case may be, the District Magistrate
shall, on such request being made to him,—
(a) take possession of such property and documents relating thereto; and
(b) forward them to the recovery officer.
(2) For the purpose of securing compliance with the provisions of sub-section (1), the Chief
Metropolitan Magistrate or the District Magistrate may take or cause to be taken such steps and use, or
cause to be used, such force, as may, in his opinion, be necessary.
(3) No act of the Chief Metropolitan Magistrate or the District Magistrate done in pursuance of this
section shall be called in question in any court or before any authority.
36-I. Establishment of Appellate Tribunal.—(1) The Central Government shall, by notification,
establish one or more Appellate Tribunals, to be known as the Housing Finance Institutions Debt
Recovery Appellate Tribunals, to exercise the jurisdiction, powers and authority conferred on such
Tribunal by or under this Act.
(2) The Central Government shall also specify in the notification referred to in sub-section (1), the
areas in relation to which the Appellate Tribunal may exercise jurisdiction.
(3) Notwithstanding anything contained in sub-sections (1) and (2), the Central Government may
authorise the Presiding Officer of an Appellate Tribunal to discharge also the functions of the Presiding
Officer of other Appellate Tribunal.
36J. Composition of Appellate Tribunal.—An Appellate Tribunal shall consist of one person only
(hereinafter referred to as the Presiding Officer of the Appellate Tribunal) to be appointed, by
notification, by the Central Government.
36K. Qualifications for appointment as Presiding Officer of Appellate Tribunal.—A person shall
not be qualified for appointment as the Presiding Officer of an Appellate Tribunal, unless he—
(a) is, or has been, or is qualified to be a District Judge;
(b) has been a Member of the Indian Legal Service and has held a post in Grade II of that Service
for at least three years.
36L. Term of office.—The Presiding Officer of an Appellate Tribunal shall hold office for a term of
five years from the date on which he enters upon his office or until he attains the age of sixty-five years,
whichever is earlier.
36M. Staff of Appellate Tribunal.—(1) The Central Government shall provide the Appellate
Tribunal with such officers and other employees as that Government may think fit.
(2) The officers and other employees of the Appellate Tribunal shall discharge their functions under
the general superintendence of the Presiding Officer.
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(3) The salaries and allowances and other conditions of service of the officers and other employees of
the Appellate Tribunal shall be such as the Central Government may by rules made under this Act
specify.
36N. Salaries and allowances and other terms and conditions of service of Presiding
Officers.—The salary and allowances payable to and the other terms and conditions of service (including
pension, gratuity and other retirement benefits) of, the Presiding Officer of an Appellate Tribunal shall be
such as the Central Government may by rules made under this Act specify:
Provided that neither the salary and allowances nor the other terms and conditions of a Presiding
Officer shall be varied to his disadvantage after appointment.
36-O. Filling up of vacancies.—If, for any reason other than temporary absence, any vacancy occurs
in the office of the Presiding Officer of an Appellate Tribunal, then the Central Government shall appoint
another person in accordance with the provisions of this Act to fill the vacancy and the proceedings may
be continued before the Appellate Tribunal from the stage at which the vacancy is filled.
36P. Resignation and removal.—(1) The Presiding Officer of an Appellate Tribunal may, by notice
in writing under his hand addressed to the Central Government, resign his office:
Provided that the said Presiding Officer shall, unless he is permitted by the Central Government, to
relinquish his office sooner, continue to hold office until the expiry of three months from the date of
receipt of such notice or until a person duly appointed as his successor enters upon his office or until the
expiry of his term of office, whichever is earliest.
(2) The Presiding Officer of an Appellate Tribunal shall not be removed from his office except by an
order made by the Central Government on the ground of proved misbehaviour or incapacity after enquiry
made by a Judge of a High Court in which the Presiding Officer concerned has been informed of the
charges against him and given a reasonable opportunity of being heard in respect of the charges.
(3) The Central Government may, by rules made under this Act, regulate the procedure for the
investigation of misbehaviour or incapacity of the aforesaid Presiding Officer.
36Q. Orders constituting Appellate Tribunal to be final and not to invalidate its
proceedings.—No order of the Central Government appointing any person as the Presiding Officer of an
Appellate Tribunal shall be called in question in any manner, and no act or proceeding before an
Appellate Tribunal shall be called in question in any manner on the ground merely of any defect in the
establishment of an Appellate Tribunal.
36R. Jurisdiction, powers and authority of Appellate Tribunal.—An Appellate Tribunal shall
exercise the jurisdiction, powers and authority to entertain appeals against any order made or deemed to
have been made by the recovery officer under this Act.
36S. Appeal to the Appellate Tribunal.—(1) Any person aggrieved by an order made or deemed to
have been made by the recovery officer under this Chapter, may prefer an appeal to an Appellate Tribunal
having jurisdiction in the matter.
(2) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date
on which a copy of the order made or deemed to have been made by the recovery officer is received by
him and it shall be in such form and be accompanied by such fee as may be prescribed:
Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of
forty-five days if it is satisfied that there was sufficient cause for not filing it within that period.
(3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may, after giving the parties
to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming,
modifying or setting aside the order appealed against.
(4) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and
to the concerned recovery officer.
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(5) The appeal filed before the Appellate Tribunal under sub-section (1) shall be dealt with by it as
expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within six
months from the date of the receipt of the appeal.
36T. Deposit of amount due, on filing appeal.—Where an appeal is preferred by a borrower, such
appeal shall not be entertained by the Appellate Tribunal unless such person has deposited with the
Appellate Tribunal seventy-five per cent. of the amount due from him as determined by the recovery
officer:
Provided that the Appellate Tribunal may, for the reasons to be recorded in writing, waive or reduce
the amount to be deposited under this section.
36U. Procedure and powers of recovery officer and Appellate Tribunal.—(1) The recovery
officer and the Appellate Tribunal shall not be bound by the procedure laid down by the Code of Civil
Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and, subject to the
other provisions of this Act and of any regulations, the recovery officer and the Appellate Tribunal shall
have powers to regulate their own procedure including the places at which they shall have their sittings.
(2) The recovery officer and the Appellate Tribunal shall have, for the purposes of discharging their
functions under this Act, the same powers as are vested in a civil court under the
Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters,
namely:—
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits;
(d) issuing commissions for the examination of witnesses or documents;
(e) reviewing its decisions;
(f) dismissing an application for default or deciding it ex parte;
(g) setting aside any order of dismissal of any application for default or any order passed by it
ex parte; and
(h) any other matter which may be prescribed.
(3) Any proceeding before the recovery officer or the Appellate Tribunal shall be deemed to be a
judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196 of the
Indian Penal Code (45 of 1860), and the recovery officer or the Appellate Tribunal shall be deemed to be
a civil court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure,
1973 (2 of 1974).
36V. Limitation.—The provisions of the Limitation Act, 1963 (36 of 1963) shall, as far as may be,
apply to an application made to recovery officer.
36W. Presiding Officer, recovery officer, other officers and employees to be public servant.—
The Presiding Officer, other officers and employees of an Appellate Tribunal and the recovery officer
shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code
(45 of 1860).
36X. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings
shall lie against the Central Government or against the Presiding Officer of an Appellate Tribunal or
against the recovery officer for anything which is in good faith done or intended to be done in pursuance
of the provisions of this Act or any rule or regulation or order made thereunder.
36Y. Bar of jurisdiction.—No Court or other authority shall have, or be entitled to exercise, any
jurisdiction, powers or authority (except the Supreme Court, and a High Court exercising jurisdiction
under articles 226 and 227 of the Constitution) in relation to the matters specified in this Chapter.
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36Z. Transitional provisions.—Notwithstanding anything contained in this Act, till the
establishment of the Appellate Tribunal under section 36-I for any area, the Appellate Tribunal
established under section 8 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993
(51 of 1993) and which is functioning in that area shall exercise the jurisdiction, powers and authority
conferred on the Appellate Tribunal under this Act.]