The DRAT dismissed the appellant's appeal challenging the requirement to deposit 15% of the claimed amount as security for staying SARFAESI possession proceedings, upholding the lower court's condition for non-compliance.
Appellant directed to deposit ₹1,25,00,000/- in two instalments; appeal stands dismissed in default.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present : Mr. Justice Ashok Menon, Chairperson
I.A. 524/2022 (WoD) In Appeal on Diary No. 1038/2022
Between
M/s. Bhagyashree Enterprises & Ors. … Appellant/s V/s.
Punjab National Bank …Respondent/s
Mr. S.S. Kothya along with Mr. R.A. Kamble, Advocate for Appellants.
Ms. Hema Desai, i/b M/s. Singhi & Co., Advocate for the Respondent No.1
-: Order dated: 04/11/2022:-
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Tribunal. The Appellant submits that several contentions have been raised in the S.A. questioning the propriety of the Sarfaesi measure initiated by the Respondent Bank. The classification of the NPA has been challenged notice u/s 13 (2) is also challenged and therefore, the Appellants contents that they have a very good case on merits and the amount to be deposited u/s 18 (1) may be limited to the 25 % debt due and claimed by the Respondent. 4. The learned counsel appearing for the Respondent has vehemently opposed the application stating that the no indulgence needs to be shown to the Appellant because he has been defaulting payments and although he had a voluntary payment to be made on the basis of which direction was given by the learned Presiding Officer he defaulted that too.
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(4) ALL. MR 784 . Under the circumstances, I direct the Appellant to deposit the sum of ₹ 1,25,00,000/- as pre-deposit u/s 18 (1) of the SARFAESI Act within a period of four weeks in two equal instalments. The first instalment shall be paid within three weeks, on or before 25.11.2022 and 2nd instalment shall be paid within one week, on or before 02.12.2022. In default, the Appeal shall stand dismissed, without any further reference to this Tribunal.
Sd/Chairperson
ppsa-10
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3 issues framed by the court
Whether the appellant is entitled to a reduced pre-deposit under Section 18(1) of the SARFAESI Act considering lack of pleaded financial strain and voluntary payment default.
Whether the appeal should be dismissed due to failure to comply with the directed pre-deposit amount within the stipulated timeframe.
Whether the initiation of SARFAESI measures under Section 13 and 18 can be stayed upon partial compliance with pre-deposit requirements.
Colour shows how this judgement treated each authority
Sterlite Technologies Ltd. vs. Union of IndiaExplained¶5
Sterlite Technologies Ltd. vs. Union of India 2012 (4) ALL MR 784
1 provisions across 1 enactments
M/s. Bhagyashree Enterprises & Ors.
Punjab National Bank
Ashok Menon
As recorded by the court registry
2 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
