Disposed

Hotel Billy International through Its Prop Kishor Chunnilal Mantri v. Punjab National Bank

DRAT15 Jul 2022IA/290/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an application for waiver of the deposit under Section 18(1) of the SARFAESI Act, directing appellants to pay Rs. 1.15 Crore by 12/08/2022 to obtain a stay on enforcement proceedings. Failure to pay would result in automatic dismissal of the appeal.

What did the court decide?

Direction to pay Rs. 1.15 Crore by 12/08/2022 as pre-deposit to obtain stay of proceedings.

Hotel Billy International through Its Prop Kishor… — 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. 290/2022 (WoD)

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In Appeal on Diary No. 586/2022

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Between

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M/s Hotel Billy International through its prop. KishorMantri&Ors.

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… Appellant/s

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V/s.

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Authorized Officer, Punjab National Bank …Respondent/s

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Mr. S. N. Fuladia/w Mr. U. N. Fuladi, Advocate for the Appellants. Mr. Shreesh Oak, Advocate for the Respondent Bank.

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-: Order dated: 15/07/2022:-

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Heard the Ld. Counsel appearing for the Appellants and Ld. Counsel for the Respondent Bank.

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This is an application for waiver of deposit under sec. 18(1) of SARFAESI Act. The amount which has been stated in the auction notice in accordance with which an auction of the secured asset had taken place, is Rs.1,42,30,841.05 as on 24.05.2022. Since the Appellants are challenging the auction, he cannot take benefit of whatever amount has come in by way of auction and therefore, he will have to pay 50% of the amount which is claimed in the said sale notice to comply with the second proviso to Sec. 18(1) of SARFAESI Act.

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The Ld. Counsel appearing for the Appellants submits that the Appellants have been earnest in making payment to avoid S.A. and they have also paid Rs.20 lacs on 18.06.2019. It is also stated that he has got a good case on merits and is challenging measures taken

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under the SARFAESI Act on technicalities. Before going into the merits of the case in detail, I am satisfied that the Appellants may have an arguable case in this matter but at the same time, they have not pleaded anything about theirimpecuniosity and therefore, they are not entitled to get any indulgence to reduce the amount from 50% to 25% which is within the discretion of this Tribunal but however, in view of the fact that the Appellants have been earnestly making some payments towards the loan for which they have made an attempt on 18.06.2019, I direct the Appellants to pay a sum of Rs.1.15 Crore on or before 12.08.2022 by way of pre-deposit. On making the payment, they shall be entitled to a stay of all further proceedings under the Surfaesi Act.

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Failure to make the payment would entail in dismissal of the Appeal automatically.

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Post on 16.08.2022 for compliance with the payments.

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Sd/Chairperson

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mks-7

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Hotel Billy International through Its Prop Kishor Chunnilal Mantri v. Punjab National Bank

Case brief

What is this about?

What did the court decide?

Hotel Billy International through Its Prop Kishor Chunnilal Mantri v. Punjab National Bank

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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Hotel Billy International through Its Prop Kishor Chunnilal Mantri versus Punjab National Bank