Disposed

Royal Medical Trust v. Canara Bank

DRAT22 Sept 2022MISC APPEAL/39/2022

Case brief

AI extract

What is this about?

On an application for waiver of statutory deposit for an appeal, the Tribunal held that the amount claimed in the Section 13(2) Demand Notice, rather than the Section 13(4) Sale Notice, determines the deposit requirement. It ordered the appellant to deposit 50% of the Section 13(2) amount in four instalments.

What did the court decide?

Direction to deposit Rs.21,78,85,560/- in four instalments starting 30.09.2022, based on 50% of Section 13(2) demand.

Royal Medical Trust versus Canara Bank — Banking and Recovery | DRAT (2022)

¶1

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

¶2

IA 317/2022 In A.IR:251/2022

¶3

Royal Medical Trust V/S Canara Bank

¶4

22/09/2022

¶5

This Application is filed seeking waiver of statutory deposit required under Section 18 (1) of SARFAESI Act, 2002 for entertaining the Appeal.

¶6

Appellant preferred this Appeal under Section 18 of SARFAESI Act, 2002 challenging Order dated 27.06.2022 in IA 1011/2022 in SA 273/2022 passed by DRT-I, Ernakulam.

¶7

Heard Learned Advocates of both parties.

¶8

Learned Advocate for Petitioner/Appellant submitted that Authorised Officer of Respondent Bank in Section 13(2) Notice dated 01.03.2017, claimed a sum of Rs.43,57,71,120.30p and same amount is reiterated in Notice issued under Section 13(4) of SARFAESI Act, 2002, dated 31.10.2019, but in E-Auction Sale Notice dated 16.05.2022, Authorised Officer of Respondent Bank claimed a sum of Rs.98,24,35,804.30p as on 13.05.2022. It is submitted that amount claimed in Demand Notice issued under Section 13(2) of SARFAESI Act, 2002, has to be taken into consideration for the purpose of statutory deposit, and that Petitioner/Appellant may be granted four equal instalments for depositing said amount, and to that effect, an Affidavit is filed today.

¶9

Advocate for Respondent Bank opposed and submitted that sale is schedule to be held on 26.09.2022 and a huge amount is due from Petitioner/Appellant.

¶10

Considering the submissions of both sides and considering the Affidavit filed by Petitioner/Appellant today, amount claimed in Demand Notice issued under Section 13(2) of SARFAESI Act, 2002, is taken into consideration for the purpose of

¶11

statutory deposit, and Petitioner/Appellant shall deposit 50% of Section 13(2) Notice amount i.e. Rs.43,57,71,120.30p, which comes to Rs.21,78,85,560/-, in four equal instalments as requested by Petitioner/Appellant. First instalment of Rs.5,50,00,000/- shall be deposited on or before 30.09.2022; Second instalment of Rs.5,50,00,000/- shall be deposited on or before10.10.2022; third instalment of Rs.5,50,00,000/- Crores shall be deposited on or before 25.10.2022 and fourth instalment of Rs.5,28,85,560/- shall be deposited on or before10.11.2022 .

¶12

It is made clear that failure to deposit of any single instalment, would result in rejection of the Appeal. On making such deposit, Registrar shall invest the same in a Nationalized Bank for a reasonable period and renew it periodically, till further orders are passed.

¶13

Post the case on 03.10.2022, for reporting compliance of deposit of 1^st instalment.

¶14

Sd/Chairperson

Royal Medical Trust v. Canara Bank

Case brief

What is this about?

What did the court decide?

Royal Medical Trust 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

All orders in this case

Similar cases

Abdul Bari versus Canara Bank

Mrs Sumathi Selvakumar versus Karur Vysya Bank

T Murugan versus Mr M Banumoorthy

The Federal Bank And Another versus S. Selvaraj & Anr.

Dr S Venkatesh Babu versus City Union Bank Limited

A O The Davangere Urban Co. Operative Bank Ltd. versus Kumari Ramya and Ors.