Disposed

Prabhu Construction v. Canara Bank

DRAT10 May 2022MISC APPEAL/20/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the appellant to file a miscellaneous application seeking waiver of pre-deposit under the SARFAESI Act. The Court found a prima facie arguable case and ordered a deposit of Rs.3 Crores to continue the appeal with stay of proceedings pending payment.

What did the court decide?

Direction to deposit Rs.3 Crores in two installments; stay of further proceedings upon payment.

Prabhu Construction 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. 68/2022 In Misc. Appeal No. 20/2022

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Between

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M/s. Prabhu Construction & Anr. … Appellant/s V/s. Canara Bank …Respondent/s

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Mr. Ankur Kumar, Advocate for Appellant.

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Mr. Mobin Sayyed, i/b M/s. M. V. Kini & Co., Advocate for Respondent.

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-: Order dated : 10/05/2022 :-

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Heard learned counsel for Appellant and the Respondent on the application filed for a waiver of pre-deposit 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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It is submitted that the total amount that is due is more than Rs.7 Crores and going through the contentions raised in the Appeal, I find that there is a prima facie arguable case available to the Appellants and, therefore, it is fair that he be given an opportunity to continue with the Appeal. I, therefore, direct the Appellant to deposit a sum of Rs.3 Crores as a pre-deposit in two equal installments.

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The first installment of Rs.1.50 Crores shall be deposited on or before 07.06.2022 and the second installment of Rs.1.50 Crores shall be deposited on or before 28.06.2022.

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Status-quo as on today shall be maintained for a period of two weeks from today.

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On payment of first installment within the stipulated time, there shall be a stay of further proceedings. In case of default in any of the above referred deposits, the Appeal stands dismissed automatically.

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The above 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 amounts are deposited, it shall be invested in term deposits in the name of Registrar, DRAT, Mumbai, with any nationalized bank, initially for a period of 13 months and thereafter it will be renewed periodically.

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Post on 08.06.2022 for reporting compliance with regard to payment of the first installment.

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Sd/Chairperson

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dpj-12

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Prabhu Construction v. Canara Bank

Case brief

What is this about?

What did the court decide?

Prabhu Construction v. Canara 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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