ICSI Pushes for Company Secretaries' Authorisation to Appear Before Debt Recovery Tribunals

The Institute of Company Secretaries of India (ICSI) has formally approached the Ministry of Finance with a significant proposal — to amend Section 23 of the Recovery of Debts and Bankruptcy Act, 1993 so as to explicitly permit Company Secretaries in Practice (PCS) to represent clients before Debt Recovery Tribunals (DRTs) and Debt Recovery Appellate Tribunals (DRATs). This formal communication, dated 19th June 2026, was addressed to the Secretary of the Department of Financial Services and reflects ICSI's ongoing efforts to expand the professional domain of Company Secretaries within India's legal and regulatory ecosystem.

Background and Context

ICSI, established as a statutory body under the Company Secretaries Act, 1980 and operating under the Ministry of Corporate Affairs, is one of India's foremost professional institutes. With a membership base exceeding 81,000 qualified professionals and an active student strength of over 2,50,000, the Institute plays a pivotal role in shaping corporate governance, legal compliance, and regulatory practices across sectors.

This is not the first time ICSI has raised this matter. An earlier letter bearing reference ICSI: PFP: 2019 dated August 19, 2019 had also formally requested similar authorisation, suggesting that the issue has remained unresolved for several years and warrants urgent legislative attention.

Under Section 23 of the Recovery of Debts and Bankruptcy Act, 1993, appearance and representation before DRTs and DRATs is currently limited primarily to legal practitioners and authorised officers of financial institutions. The statute does not presently include Company Secretaries in Practice within the scope of recognised representatives, despite the fact that the subject matter of debt recovery proceedings overlaps substantially with areas in which PCS hold recognised expertise.

This legislative gap forms the crux of ICSI's current representation to the Ministry.

Why ICSI Believes PCS Should Be Authorised: Key Justifications

Growing Complexity of Debt Recovery Matters

ICSI's letter underlines that debt recovery disputes have undergone a substantial transformation in their nature and complexity over the past decade. What was once a relatively straightforward process of recovering unpaid dues has now evolved into multi-layered proceedings involving intricate corporate, financial, and insolvency-related considerations. According to ICSI, these proceedings now routinely encompass issues such as: