Disposed

Manikchand Dewasi v. Canara Bank

DRAT14 Jun 2022IA/163/2022

Case brief

AI extract

What is this about?

The Debt Recovery Appellate Tribunal, Mumbai, allowed a reduction in the pre-deposit for an appeal under the SARFAESI Act from 50% to 40%. The court directed payment of Rs. 40 Lakhs in two instalments, stayed proceedings upon the first instalment, and reiterated the investment procedure.

What did the court decide?

Reduced pre-deposit to Rs. 40 Lakhs payable in two instalments; stay on proceedings granted upon payment of the first instalment.

Manikchand Dewasi versus Canara Bank — Banking and Recovery | DRAT (2022)

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BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present: Mr. Justice Ashok Menon, Chairperson

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I.A. No. 163/2022 (WoD)

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Appeal No. 44/2022

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Between Mr. Manikchand Dewasi, Proprietor of … Appellant/s M/s. Shree Ganesh Eelectricals & Plywood V/s.

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Canara Bank & Anr. …Respondent/s

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Mr. Rajesh Nagori along with Mr. Tushar Dahibhawkar and Ms. Aarti Suvarna, i/b M/s. Dahibawkar & Co., Advocate for Appellants.

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Mr. Anish Sharma a/w Ms. Mittal Parekh, i/b M/s. M. V. Kini & Co., Advocate for Respondent No. 1.

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-: Order dated : 14/06/2022 :-

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This application is filed u/s 18 (1) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'the SARFAESI Act).

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The amount that is claimed by the Respondent Bank in their notice u/s 13 (2) of the SARFAESI Act is Rs.1,08,15,368/- as on 22.11.2019. Subsequently, the borrower had paid a sum of Rs.36,00,000/- in instalments which is also to be accounted for. The Appeal is filed on 10.05.2022 and the secured asset was already sold on 20.03.2020 when the then outstanding amount together with interest was Rs.79,56,866/- as per the account statement which has been produced by the Appellant.

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The amount realized on sale of the secured asset is Rs.1.58 Crores, approximately. There is an excess amount which has been realized and it is submitted by the learned counsel for the Respondent Bank that the excess amount has already been credited to the account of the borrower. The learned counsel for the Appellant also admits this submission. But in view of the fact that the sale has been challenged by the borrower on various grounds, the Appellant will not be able to take advantage of considering the sale proceeds for the pre-deposit required to be paid u/s 18 of the SARFAESI Act. The interest calculated is @ 10.60% p.a. (compounded quarterly). The total amount that will be due on that calculation as on the date of appeal would be approximately Rs.1.00 Crore. This is admitted by both the sides.

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Under the circumstances, the Appellant has expressed inability to deposit 50% of the amount due in view of the fact that he has got good prima facie case for challenging the impugned order. The Appellant has made out an arguable case for the appeal to be entertained.

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In view of above, I am inclined to show indulgence to reduce the amount of pre-deposit from 50% to 40%. Hence, I direct the Appellant to deposit Rs.40 Lakhs as pre-deposit in two equal instalments. First instalment of Rs.20 Lakhs shall be paid on or before 21.06.2022 and the second instalment of Rs.20 Lakhs shall be paid on or before 23.07.2022.

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Default in payment of the any of instalments on time would result in the Appeal being dismissed.

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On the payment of the first installment within the time stipulated, there shall be a stay on all further proceeding with regards to the subject secured property under the SARFAESI Act.

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As and when the said amounts are deposited, they shall be invested in term deposits in the name of Registrar, DRAT, Mumbai, with any nationalized bank, initially for 13 months and thereafter it will be renewed periodically.

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Post on 22.06.2022 for reporting compliance concerning payment of the first installment.

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Sd/Chairperson

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dpj-5

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Manikchand Dewasi v. Canara Bank

Case brief

What is this about?

What did the court decide?

Manikchand Dewasi v. Canara Bank

Case brief

What is this about?

What did the court decide?

What the court decided

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