New legislation for debt recovery on anvil: Jaitley

new delhi: law minister arun jaitley said a legislation to enable financial institutions to recover debts from defaulters was on the anvil. "we not only require to change the rules but also the mindset where creditors would be entitled to take the assets of defaulters," he said at the first debt recovery tribunal (drt) lok adalat here. jaitley said the principle where the creditors have to chase the debtors have to be changed as the debtors are capable of creating road-blocks. he said new legislations to keep the confidence of banks and financial institutions are needed because the existing insolvency law lacks the teeth to deal with blood-sucker industry. stating that the amount involved in the cases pending before drt was 25 percent more than the national budget, he said if the position continues, the viability of the banking system would be in doubt. the minister suggested that different tribunals should be brought under one roof which would decrease the hardship for both litigants as well as lawyers.