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Delhi High Court Intervenes to Ensure Access to Appellate Justice in Debt Recovery Case

LAW FINDER NEWS NETWORK | December 30, 2025 at 3:54 PM
Delhi High Court Intervenes to Ensure Access to Appellate Justice in Debt Recovery Case

Procedural and Administrative Impediments Overcome as Court Facilitates Access to Statutory Appeal for Truevalue Marketing Services Private Limited


In a significant judgment dated December 23, 2025, the Delhi High Court exercised its writ jurisdiction to ensure that Truevalue Marketing Services Private Limited, along with another petitioner, gained access to their statutory appellate remedy under the Recovery of Debts and Bankruptcy Act, 1993. The Court's intervention came in response to procedural and administrative barriers that had effectively rendered the petitioners remediless, despite the availability of a statutory appeal against an order passed by the Debts Recovery Tribunal (DRT) in April 2025.


The case originated from recovery proceedings initiated by the Bank of India against certain debtors, leading to the issuance of a Recovery Certificate in 2017. The execution of this certificate saw auction sales conducted, with Truevalue Marketing Services emerging as auction purchasers for properties in Mumbai and Chennai. However, the petitioners faced significant challenges in accessing the appellate mechanism due to territorial jurisdiction issues and administrative hurdles at various Debts Recovery Appellate Tribunals (DRATs).


Despite the Court's earlier direction allowing the petitioners to file an appeal, their attempts were thwarted by recusals, vacancies, and jurisdictional objections. These impediments led the petitioners to approach the Delhi High Court, seeking a remedy to their situation. The Court recognized the exceptional circumstances where procedural hurdles had made the statutory appeal process ineffective.


Emphasizing the integral nature of appellate mechanisms in statutory schemes, the Court noted that litigants should not be denied access to justice due to factors beyond their control. Consequently, it directed that the petitioners’ appeal be entertained by a competent DRAT within seven days, ensuring that the subject matter of the appeal remains intact pending consideration.


This judgment underscores the judiciary's role in safeguarding access to justice, particularly when administrative and procedural challenges threaten to nullify statutory remedies. The decision also highlights the importance of maintaining an effective appellate framework to uphold the principles of justice within the legal system.


Bottom Line:

Writ jurisdiction under Article 226 of the Constitution of India can be exercised to ensure access to statutory appellate remedies when procedural or administrative impediments render such remedies inefficacious.


Statutory provision(s): Article 226 of the Constitution of India, Sections 19(23), 26, and 30 of the Recovery of Debts and Bankruptcy Act, 1993, Section 21 of the Code of Civil Procedure, 1908


Truevalue Marketing Services Private Limited v. Union of India, (Delhi)(DB) : Law Finder Doc id # 2825747

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