Mr. K. C. Bala Sundram v. Icici Bank Limited

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

IA 85/2022 In A.IR:39/2022

K.C.Balasundaram & Anr V/S Icici Bank Ltd

05/12/2022

This application is filed seeking waiver of statutory deposit under Section 21 of RDDB & FI Act.

Advocate for appellants submitted that appellant paid so far an amount of Rs.18,73,288/- after issuance of Recovery Certificate and the same is admitted by the respondent bank in their counter. It is submitted that as appellants are challenging rate of interest and even Recovery Certificate, amount already deposited may be taken into consideration and for the balance, appellants may be permitted to deposit 25% for entertaining the appeal, as appellants are not in a position to discharge the amount arrived at in the Recovery Certificate.

On the other hand, advocate for respondent bank opposed and submitted that bank has not admitted payment of Rs.18,73,288/- and that it only admitted deposit of Rs.8.00 lakhs as per orders passed in Securitization Application, which was deposited and remaining Rs.10.73,288/- was paid from 2004 to June, 2012 towards loan instalments prior to filing OA, therefore, that cannot be taken as payment after recovery certificate. It is further submitted that as per Section 21 of RDDB & FI Act, amount determined in the recovery certificate has to be taken into consideration for the purpose of statutory deposit and appellants have to deposit 50% of Recover Certificate amount.

I have perused material papers, affidavit filed in support of petition and counter filed on behalf of respondent bank. As per Section 21 of RDDB & FI Act amount determined under Section 19 of RDDB & FI is the debt due from appellants and for entertaining the appeal, appellants have to deposit 50% of the said amount and that this Tribunal is vested with power of reducing it upto 25%, by recording reasons in writing. Admittedly, amount determined under Section 19 of RDDB & FI is Rs.22,00,000/- and as per Section 21, this amount has to be taken into consideration for the purpose of statutory deposit.