Partly allowed

S S Vasan v. Indian Bank

DRAT2 May 2022MISC APPEAL/13/2022

Case brief

AI extract

What is this about?

The Debts Recovery Appellate Tribunal fixed the statutory deposit for an appeal challenging an interim interest default notice. It held the deposit base is the 13(2) notice amount, ordered a 25% payment due to the interim nature, and stayed proceedings pending compliance.

What did the court decide?

Appellant directed to deposit Rs.4,46,674.25; interim stay directed on deposit; failure to deposit leads to dismissal.

S S Vasan versus Indian Bank — Banking and Recovery | DRAT (2022)

¶1

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

¶2

IA 67/2022 (Urgent) & IA 68/2022 (Waiver)

¶3

¶4

A.IR:46/2022

¶5

S.S.Vasan & Anr ... Appellants Vs Indian Bank ... Respondent

¶6

02/05/2022

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Ld. Counsel Shri D. Desingu for petitioner/appellant and Ld. Counsel Shri R. Ramakrishnan for respondent bank present.

¶8

IA 67/2022 (urgent); This IA is dismissed as infructous.

¶9

IA 68/2022 (waiver): This application is filed seeking waiver of statutory deposit. Counted filed by the respondent bank.

¶10

This appeal is filed challenging the order dated 24.2.2022 passed in IA 198/2022 in SA 77/2022. Admittedly, SA is still pending. As per Section 13(2) Notice, the amount claimed is Rs.22,86,697/-. As per the order dated 24.2.2022, appellant paid a sum of Rs.5.00 lakhs to the respondent bank on 28.2.2022.

¶11

Advocate for appellant represented that as the appeal is against an interim order, statutory deposit may be reduced to 25%. Advocate for respondent bank opposed the same and submitted that 13(2) notice was issued 7 years back i.e. in the year 2015 and the amount indicated in the sale notice is Rs.55,28,000/- and submitted that appellant has to deposit 50% of Rs.55,28,000/-.

¶12

Considering the submissions and rival contentions of both parties, as the amount demanded by the bank is the criteria for the purpose of statutory deposit as per the language of Section 18(1) of SARFAESI Act, the amount indicated in Section 13(2) notice has to be taken into consideration for fixing the statutory deposit.

¶13

As the order challenged is only against an interim order, I am of the view that directing the appellant to deposit 25% of the amount demanded in Section 13(2) notice would meet the ends of justice. As appellant has deposited Rs.5.00 lakhs after issuance of Section 13(2)notice, that amount has to be deducted from out of the amount demanded in Section 13(2) notice and upon doing so, the amount comes to Rs.17,86,697/- and out of Rs.17,86,697/-, 25% has to be deposited.

¶14

Appellant shall deposit an amount of Rs.4,46,674.25p within four weeks from today i.e. on or before 30.5.2022. Failing to deposit the said amount would result in automatic dismissal of the appeal.

¶15

As per Section 18, proviso (2) of SARFAESI Act, unless statutory deposit is made, appeal cannot be entertained.

¶16

Advocate for appellant sought for interim relief. When the appeal is not entertained, question of granting any interim relief does not arise without making statutory deposit.

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However, to protect the interest of both parties, it is ordered that as and when the amount indicated above is deposited in compliance of this order, there shall be an interim protection to

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the appellant, which means, the moment deposit of amount indicated above is made, parties have to maintain status quo till further orders are passed.

¶19

As and when amount is deposited, Registrar shall invest the same in any nationalized bank for a reasonable period and renew it periodically.

¶20

List the matter on 31.5.2022 for reporting compliance.

¶21

Sd./Chairperson

S S Vasan v. Indian Bank

Case brief

What is this about?

What did the court decide?

S S Vasan v. Indian Bank

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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