June 2024

A Debts Recovery Tribunal (DRT) is a specialized legal body established under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act). Its primary function is to adjudicate cases related to the recovery of debts owed to banks, financial institutions, and asset reconstruction companies. DRTs were established to provide a streamlined and expeditious mechanism for resolving disputes arising from non-performing assets (NPAs) and facilitating the recovery of outstanding dues. What is Debt Recovery Tribunal DRT? A Debt Recovery Tribunal DRT functions as a quasi-judicial statutory body established under the Recovery of Debt and Bankruptcy Act 1993. Its purpose is to adjudicate cases and facilitate the recovery of loans from banks and financial institutions. In 2020, the Indian Government raised the minimum limit for filing cases under DRTs to 20 lakh rupees. The Presiding Officer, appointed by the Central Government, heads the Debt Recovery Tribunal DRT. Appeals against DRT orders can be made to the Debt Recovery Appellate Tribunal (DRAT), which a Chairman heads. Financial institutions and banks file loan recovery applications with the DRT having jurisdiction over the debtor’s residence or business location. During adjudication, the DRT possesses powers akin to a District Court. Additionally, the Debt Recovery Tribunal (DRT) has recovery officers responsible for executing the orders it issues. Background of Debt Recovery Tribunal Before the enactment of the Recovery of Debt and Bankruptcy Act-1993, debt-related cases were filed in the Civil Courts. These cases were decided according to the provisions of the CPC (Civil Procedure Code). These used to take several years to resolve the case. Moreover, there was a lot of pendency in the cases. It would lead to unnecessary delays in the recovery of debts by the Banks.  Observing these issues in the system, in 1981, a committee headed by Mr. T. Tiwari was appointed. It was tasked with recommending reform measures in this system. The committee observed that the Courts were already burdened with regular cases. This leads to the treatment of loan recovery cases as other ordinary cases. Hence, the problems of pendency and delay are arising. Amond different recommendations of the committee, one was the establishment of tribunals (quasi-judicial bodies) that would only handle the recovery cases. It took a decade to accept the recommendations and establish such a body. The Recovery of Debt and Bankruptcy Act-1993 was introduced to solve the issue of delay and pendency. The legislation was brought after the 1991 Economic liberalisation of the Economy.  the key aspects of DRTs: Establishment and Jurisdiction: DRTs were established by the Government of India to address the rising issue of non-performing assets in the banking and financial sector. Each DRT is established for a specified territorial jurisdiction, and its jurisdiction extends to cases involving the recovery of debts due to banks and financial institutions within that jurisdiction. Purpose and Function: The primary purpose of DRTs is to adjudicate cases related to debt recovery. When a borrower defaults on loan repayments, the creditor (bank or financial institution) can approach the DRT to recover the outstanding debt. DRTs provide a specialized forum for creditors to seek redressal and obtain orders for the recovery of dues. Types of Cases Handled: DRTs handle cases involving the recovery of debts arising from loans, advances, or financial accommodations provided by banks, financial institutions, and asset reconstruction companies. These debts may include corporate loans, personal loans, credit facilities, mortgages, or any other form of financial assistance extended by the creditor. Procedure for Filing a Case: To initiate proceedings before a DRT, the creditor must file an application seeking the recovery of the outstanding debt. The application must contain details of the debt, particulars of the borrower, and supporting documents such as loan agreements, promissory notes, and evidence of default. Adjudication Process: DRTs follow a quasi-judicial process akin to civil courts. They have the authority to summon and examine witnesses, call for documents, and conduct hearings to adjudicate the merits of the case. DRTs are empowered to pass orders for the recovery of debts, including orders for the attachment and sale of the debtor’s property to satisfy the outstanding dues. Appeals and Enforcement: Parties aggrieved by DRT orders have the right to appeal against the decision before the Debts Recovery Appellate Tribunal (DRAT). DRATs serve as appellate authorities, reviewing the decisions of DRTs and providing redressal to parties dissatisfied with the DRT’s judgment. Once a recovery order is passed by the DRT, it can be enforced through various means, including attachment and sale of the debtor’s assets. Specialized Adjudication: DRTs offer a specialized forum for the expeditious resolution of debt recovery disputes. They are equipped with the necessary expertise and infrastructure to handle complex financial matters efficiently. The focus of DRTs on debt recovery cases ensures that disputes are resolved promptly, contributing to the efficient functioning of the banking and financial sector. Features of DRT The Debt Recovery Tribunal (DRT) is established to settle cases to restore the unpaid amounts of the NPAs (Non Performing Assets). The Banks declare these as per RBI guidelines. Under Section 4 of the Recovery of Debt and Bankruptcy Act-1993, the DRT shall have only one member (called Presiding Officer). The notification of the Central Government shall appoint him. The Presiding Officer of one Tribunal can also preside over other Tribunals if the Central Government authorizes it. The Presiding Officer will have a term of 5 years or till the age of 65 years, whichever is earlier. He shall be eligible for reappointment. He should be qualified enough to be the District Judge. For cases of recovery of debt greater than 20 Lakh Rs, Banks, and Financial Institutions can approach the DRT. For amounts lower than this, Banks and Financial Institutions approach the Civil Courts. DRT and DRAT need to maintain the Principles of Natural Justice. However, they can regulate their own procedures. For this, they are not bound by the CPC (Civil Procedure Code) provisions. One does not need a degree in Law to argue cases before the DRT. DRTs are mandated

In India, restaurants are quickly rising to the top of the list of the most profitable investment opportunities. Much like every business venture, there are certain licenses required for restaurants that need to be acquired before the big launch. In India, initiating a restaurant business is one among the highly profitable opportunity for the entrepreneurs. The Ministry of Tourism has started a voluntary scheme for the approval of Standalone Restaurants in the country with the aim of providing regulated world-class services to the tourists. The objective is to encourage quality standards and services in Standalone Restaurants so as to promote tourism in India and abroad. Eligibility Criteria Restaurants to be fully and effectively air-conditioned. In case of an open-air restaurant, the committee in its discretion would relax this condition. The restaurants located in the hill stations must have proper heating arrangements. Design and decor of the establishment must be on point. Various types of cuisine to be offered Service quality Crockery (Good quality crockery, cutlery, tableware, glassware, silverware and linen to be provided) Kitchen and Washing areas (to be clean, hygienic, well equipped and well-maintained kitchen and pantry along with the proper and adequate cold storage facilities) Cooking utensils must also be of good quality and well arranged. In the case of a manually operated washing system, a 3 tier system must be applied. Steps to be taken to keep the place clean and safe from all types of pests. The pest control of all areas to be done regularly. Segregated wet and dry garbage disposal system to be available Cleanliness & Hygiene: Front and public areas, rooms, kitchen, pantry, dining area, refrigerator, store or bar (where applicable as per the bye-laws), garbage, staff facilities and back areas including the maintenance areas. The registration to be taken with the local authorities such as Police, Municipality, Water, Fire, Electricity, State Tourism Department or Corporation. The CCTV cameras in the public spaces along with the data backup are mandatory. The supervisory staff in contact with the Guests must be able to understand and speak English. Other staff in the restaurants must be available to explain the items on the menu to the customers. Explanatory notes in English must be given in the menu cards, in case, languages other than English are used. The staff to be with smart and clean uniforms. There must be telephone facilities, first aid box, etc Staff facility services (Separate Ladies and Gents cloakrooms, provision of lockers) There must be proper facilities and services to be given a for the physically challenged and segregation of smoking and non-smoking area. Documents Name of the Restaurant Name and address of the Promoters or Owners along with a note on their business antecedents. Complete postal details of the promoter along with the telephone, Email address and Fax. Documents related to the status of the promoter/owner If Private and Public Limited Company with the copies of Memorandum and Articles of Association. If Partnership, Partnership Deed and Registration Certificate is required to be submitted If a proprietary concern, then the name & address of proprietor and Registration Certificate to be submitted Location of the restaurant site along with the postal address Documents related to the details of the site Distance in Kilometers from the Railway station and airport The located area on State or National Highway Distance from the city centre/town/shopping area etc. Located between which major cities or towns Documents that specify the details of the Restaurant The area in sq.m. along with the title – owned/leased with the proof of sale/lease deed Copy of Land Use permit/letter from the local authorities Number of seats Toilets facilities for ladies and gents Details of public areas, lobby/bar, parking space, facilities for the physically abled, eco-friendly systems and any other additional facilities. The area for each facility must be indicated in sq. ft. Details of Fire Fighting Devices/Hydrates, etc. Details of measures for water/energy conservation and other eco-friendly devices and initiatives Details of air-conditioning/power back-up Area of the Establishment – 200 sq. ft. for restaurants of seating space up to 100 people and 300 sq. ft. for more than 100 people Certificates/No Objection Certificates Procedure for the Approval of Restaurants Access the Website Step 1: The application for the approval of Restaurant can be submitted online by accessing the official web-portal of Classification, Approval and Occupancy of Hotels. New User Application Step 2: In the case of a new user, the applicant has to get registered in the official web-portal by clicking on the “New Registration” link which will direct to the registration page. Login to Portal Step 4: Now, log in with the registered User Identity and Password. Step 5: After Login, a new page will be displayed, where the applicant will have to Apply for the Approval of Restaurants Application Form Step 6: The following application form will get opened on clicking the link “Apply for Approval of Restaurants”. Fill out the Right Credentials Step 7: The information of the owner has to fill out all the requested details in the approval form. Step 8: After providing all the details, the applicant has to click on the “save and proceed” button. Upload Documents Step 9: Now upload all the documents that are mentioned above then click on “save and proceed” button. Step 10: The uploaded documents that are received from applicants after scrutiny in all respects would be acknowledged online. Make Payment Step 11: Applications for the Approval of Operational Restaurants with the requisite fee is payable only by Debit/Credit Card/RTGS/NEFT. Step 12: The application fee payable for approval and renewal of a restaurant is Rs.5000. The demand draft (DD) would be payable to “Pay & Accounts Officer, Department of Tourism, New Delhi  FAQs What are the licenses needed for a restaurant? The certifications or licenses needed for restaurants are: FSSAI License GST Registration Eating House License Fire License Liquor License Shop and Establishment License Health Trade License Environmental Clearance License How to get FSSAI license? ou can apply for FSSAI license from the Food Safety Compliance System (FoSCoS) portal, which is an enhanced version of Food Licensing and Registration System (FLRS). Ensure you have collated all the requisite documents before applying for the FSSAI license.  Practice area’s

Any corporation that owns and operates the gas stations is in the most lucrative business. Many people in our country believe the petroleum business yields many returns. With the rise in the number of vehicles on the road, there is an increasing demand for gas stations across the country. Every month, an Indian petrol station sells an average of 5 lakh litres of diesel and gasoline. Essar Oil Limited is the largest publicly traded oil and gas business globally. It is now called Nayara Energy. Nayara Energy works with India’s fastest-growing retail business network and the largest private-sector gasoline retail chain. Over 4,500 active locations are owned by the corporation, which is located across India. Essar petrol pump dealership cost is nominal as compared to other petrol pumps.  Requirements to Open an Essar Oil Gas Pump Dealership in India Open to All Indian Nationals: Any Indian citizen who owns a suitable piece of land that Essar Oil (Nayara Energy) can lease has the opportunity to become an Essar Petrol Pump Dealer. Land Acquisition Options: Individuals without existing land but who have a keen interest in purchasing or leasing a suitable plot of land are also eligible to apply for an Essar Oil Petrol Pump Dealership. The acquired land can be leased back to Essar Oil (Nayara Energy) to establish the fuel station. These criteria collectively provide a diverse range of opportunities for individuals, whether they already own land or are willing to explore options for land acquisition to enter into a partnership with Essar Oil for the petrol pump dealership. Land Eligibility Requirements for Essar Oil Petrol Pump Setup Minimal Land Requirement: The property next to the highway must be at least 1200 square meters, and the land assigned to your town must be at least 800 square meters. Initial preparation: The selected spot must be adequately levelled and prepared to guarantee a smooth installation of the gasoline pump. Lease Period: Essar Oil is obligated to lease the selected land for the retail shop for a period of 29 and 11 months, except in Rajasthan, where the lease is 19 years and 11 months, and Tamil Nadu and Maharashtra, where it is 29 years. These variations result from various regional regulatory requirements. Profit Margins in Essar Petrol Pump Dealership Business The Essar petrol pump dealership business offers a straightforward and profitable model, guaranteeing consistent operational profits and returns. An agreed-upon lease rental will be paid for the land during the lease period. The on-site and infrastructure development will yield a performance-based return on investment at an annual rate of 5%, as per the standardized costing model. The sales commission on actual sales is competitive compared to the industry’s existing margins. How Much Does It Cost To Start An Essar Petrol Pump Franchise In India? Selected bidders must pay for the Essar Oil petrol pump’s construction and operations in addition to the site cost. Investments range from ₹50 lakhs to ₹70 lakhs on average, depending on the size of the rental facility and the features and services it offers. To set up the business, franchisees can opt for a business loan for petrol pumps. Application Fee Essar petrol pump dealership online applications cost ₹3 lakhs. The application fee is non-refundable once an appointment has been issued. The dealership application cost may get refunded in unusual circumstances if the government authority denies statutory approval for a legitimate cause. Essar Oil will make the final decision. What Documents Are Required To Start An Essar Petrol Pump Dealership In India? LOA (Letter of Appointment) Form of Expression of Interest  Land Documents, such as the 7/12 extract and the sale deed  Circle rate circular  DD for the application  Specific documents required to prove financial and business capability  A sketch of the site and a photo. License / Permission Required To open an Essar Oil petrol station, the applicant must receive the necessary government clearances and licenses. Essar Oil will provide the necessary assistance in preparing applications in accordance with government rules and mandates. A standard set of licenses or permits is essential, as shown below.  Non-Agricultural Conversion CCOE initial approval Forest NOC – In the case of forest land NOC from the District Collector, approval from the Public Works Department, approval from the Electricity Board, NOC from the Police Commissioner, and NOC from the Gram Panchayat, as required by the competent authorities Final CCOE License Retail Selling License – If applicable NH (National Highway) – Road permission  Weights stamping Essar Petrol Pump Dealership Application Procedure Applicants who own a sufficient piece of land or are ready to invest in an Essar petrol station can apply in one of the following ways: By submitting an application via the company’s website. By emailing [email protected] the facts of the land and your contact information. By submitting an Expression of Interest form to the divisional office concerned. Simply dial 022-71321122 to reach the franchise support. Essar Petrol Pump Dealership– Online Application Step 1: Click the ‘Franchisee’ option on the main page, and the link will automatically take you to a new page. Step 2: On the page, select “Apply Online Option.” A franchise inquiry form for Essar Oil retail outlets will be shown. Step 3: Fill in your name, phone number, email address, and district information. The application form will then be sent to the divisional office after clicking the “Submit” button. Application through Essar Oil Divisional Office Obtain and Complete Forms: Obtain the prescribed application forms for Essar Oil retail outlets from the relevant divisional office. Form Submission: Complete the application forms, ensuring all details are provided in the prescribed format. Submit the forms and supporting documents to the Essar Oil divisional office. Partnership Note: In the case of a partnership, each partner must submit a separate application form and an individual application fee. FAQs How much investment is required to open an Essar Oil petrol station in India? Aside from the cost of land, chosen candidates will be required to invest in the construction of the Essar petrol pump franchise and the day-to-day operations of the station. The typical investment