Partly allowed

M/s. National Autowheels Pvt. Ltd. v. Icici Bank Ltd.

DRAT14 Jul 2022IA/271/2022

Case brief

AI extract

What is this about?

The Tribunal directed the Appellants to deposit Rs.1.25 Crores in compliance with Section 18(1) of the SARFAESI Act within three weeks, granting a 25% discount from the standard 50% requirement. An interlocutory stay on bank proceedings was ordered upon deposit, failing which the appeal would be dismissed.

What did the court decide?

Directed deposit of Rs.1.25 Crores within 3 weeks; interlocutory stay on bank proceedings upon compliance; automatic dismissal on failure to deposit.

M/s. National Autowheels Pvt. Ltd. versus Icici Bank Ltd. — Insolvency and Bankruptcy | 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. 271/2022 (WoD)

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In Appeal on Diary No. 542/2022

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Between

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M/s. National Autowheels Pvt. Ltd. & Anr. … Appellant/s V/s.

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ICICI Bank Ltd. & Anr. …Respondent/s

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Mr. Ravindra Adsure, along with Mr. Sidheshwar N. Biradar, Advocate for Appellants.

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Mr. Rushabh Chopra, i/b M/s. Vidhii Partners, Advocate for Respondents.

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-: Order dated: 14/07/2022:-

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Heard the learned counsel for the Appellants and the learned counsel for the Respondent on this application for waiver of predeposit. The Ld. counsel for the Respondent Bank has filed a statement of account pertaining to the dues from the Appellant. As on the date, after adjusting a sum of Rs.1 Crores and Rs.25 Lakhs paid in instalments by the Appellant, the outstanding dues comes to `Rs.3,65,77,362.23.

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As per the second proviso to Section 18(1) of the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Act, 2002 ('SARFAESI Act' for short) the Appeal can be entertained only if 50% of the amount of the debt due from the Appellants, as claimed by the secured creditors or determined by the D.R.T. whichever is less on the date of filing of the Appeal. The Appellants have shown their bonafide by making

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payment of Rs.1.25 Crore to the Respondent Bank in instalments, as directed by the D.R.T., and, therefore, seek the indulgence of this Tribunal to reduce the amount of pre-deposit from 50% to 25%, exercising the discretion of this Tribunal.

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After having heard both sides for some time, I direct the Appellants to deposit Rs.1.25 Crores in compliance with Section 18 (1) of the SARFAESI Act within a period of three weeks from today i.e. on or before 04.08.2022. When the Appellants deposit the aforesaid amount, there will be an interlocutory stay to all further proceedings under the SARFAESI Act taken by the Respondent Bank, in order to maintain the status quo..

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Failure to deposit the above-referred amount within the stipulated time would entail in automatic dismissal of the Appeal.

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The amount shall be deposited in the form of a Demand Draft with the Registrar of this Tribunal.

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As and when the said amount is deposited, it 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 05.08.2022 for reporting compliance.

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Sd/Chairperson

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dpj-12

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M/s. National Autowheels Pvt. Ltd. v. Icici Bank Ltd.

Case brief

What is this about?

What did the court decide?

M/s. National Autowheels Pvt. Ltd. v. Icici Bank Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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Coram

Case details

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