Centralized Insolvency, Fragmented Enforcement: Remedy Shopping In Debt Recovery Between DRT, NCLT, And Arbitration Tribunals
- IJLLR Journal
- 1 hour ago
- 1 min read
Vemuri Sriharika, BBA LLB, IIM Rohtak
ABSTRACT
Debt recovery in India does not follow one route. Instead, it entails the complex arena of at least three different dispute resolution mechanisms in which the debtor, creditor, guarantor. Or even insolvency applicant brings out all their strategies: the DRT established under the RDBA of 1993; the NCLT operating within its power as per the IBC of 2016; and finally, arbitration tribunals, whether domestic or international, invoked through arbitration clauses incorporated into lending, facility, or security documents.
This article analyses remedy shopping in the debt recovery arena as a strategic game; it examines the jurisdictional framework of each forum, identifies the zones of overlap that provide opportunities for remedy shopping, surveys the litigation tactics used by both creditors and debtors in these overlaps, and examines how judicial and legislative authorities have responded to remedy shopping. I argue that remedy shopping in debt recovery neither consists of unmitigated abuse nor constitutes benign behaviour which is completely harmless it only reflects a reasonable response to the incoherence of a multi-forum system and deserves a rational solution in return.
