Harmonization Of Recovery Laws In India: A Pathway To Enhanced Fiscal Efficiency And Reduced Pendency
- IJLLR Journal
- Apr 2
- 1 min read
Dr. Hitesh N. Dave, Advocate and Freelance Research Guide
ABSTRACT
India's legal framework for recovery of debts and government dues is characterized by multiplicity of statutes, tribunals, and enforcement mechanisms, leading to jurisdictional overlaps, procedural complexities, and unprecedented case pendency. With over 54 million pending cases across all judicial levels as of January 2026, including significant arrears in debt recovery and revenue collection matters, the fragmented recovery regime has emerged as a critical impediment to economic efficiency and fiscal consolidation. This research article examines the existing landscape of recovery laws in India, encompassing the Recovery of Debts and Bankruptcy Act (RDDBFI), 1993, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI), 2002, the Insolvency and Bankruptcy Code (IBC), 2016, and various revenue recovery statutes including the Income Tax Act, 1961, Central Excise Act, 1944, Customs Act, 1962, and state level revenue recovery acts. Through comprehensive statutory analysis, empirical examination of pendency data, and comparative jurisprudential review, this study identifies key areas of conflict, redundancy, and inefficiency in the current framework. The article proposes a unified recovery code that harmonizes procedural mechanisms, establishes clear jurisdictional hierarchies, streamlines enforcement processes, and creates a single window system for creditors and revenue authorities. The proposed harmonization is projected to reduce litigation costs, accelerate debt resolution, enhance government revenue collection efficiency, and strengthen India's credit ecosystem, thereby contributing significantly to the national exchequer and overall economic growth.
Keywords: Debt Recovery Laws, Harmonization, Judicial Pendency, SARFAESI Act, Insolvency and Bankruptcy Code, Non Performing Assets, Legal Reforms
