Mr E v. Shiril v South Indian Bank
Case brief
What is this about?
The Appellate Tribunal allowed an application seeking waiver of statutory deposit. The Court held that Section 18 mandates a 50% deposit of the claimed amount and dismissed the claim for exemption, ordering the appellant to deposit the requisite sum within two weeks or face rejection of the appeal.
What did the court decide?
Appellant directed to deposit 50% of the claimed amount (Rs. 4,48,03,341/-) within two weeks; appeal rejected if not complied.
IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 296/2022 In A.IR:231/2022
E.V.Shiril V/S A.O.,South Indian Bank Ltd
29/09/2022
This application is filed seeking waiver of statutory deposit under Section 18(1) of SARFAESI Act.
Heard both sides.
Advocate for appellant submitted that as per Section 13(2) Notice, amount claimed is Rs.8,96,06,681.50p as on 19.5.2021 and SA is filed mainly on the ground that secured property is an agricultural property, which is exempted under SARFAESI Act, therefore, there is no need to deposit any amount.
When Ld. Advocate for appellant is asked to show any exemption is given under Section 18 of SARFAESI Act for statutory deposit, except saying that he will leave the matter to the discretion of this Tribunal, he has not produced any Authority in support of his submission.
Section 18 of SARFAESI Act mandates deposit of 50% of the amount claimed by Secured Creditor or amount determined by DRT, whichever is less, failing which, appeal shall not be entertained.
Admittedly, no liability is determined by Tribunal below. Therefore, only amount claimed by secured creditor has to be taken into consideration. According to Section 13(2) Notice, amount claimed by secured creditor is Rs.8,96,06,681.50p and no payment is made after 13(2) notice. Therefore, appellant has to deposit 50% of the said amount for entertaining the appeal, as there are no grounds to reduce the statutory deposit from 50% .
Issues for consideration
2 issues framed by the court
Whether the appellant is exempted from the statutory deposit requirement under Section 18 of the SARFAESI Act due to the nature of the secured property.
Whether the amount claimed under Section 13(2) notice can be used to calculate the 50% mandatory deposit when the Tribunal below has not determined liability.
Parties & counsel
- petitioner
E.V. Shiril
- respondent
A.O., South Indian Bank Ltd
Coram
Chairperson
Case details
As recorded by the court registry
- Court
- DRAT
- Decided on
- · September
- CNR
- 331090002312022
- Topic
- Arbitration
All orders in this case
7 orders share this CNR
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