Ms Chennai Auto Spares v. Idfc First Bank Ltd.
Case brief
What is this about?
Applicant applied to reduce the statutory deposit under Section 18 of SARFAESI Act from 50% to 25%. Tribunal rejected the application, mandating a 50% deposit of Rs. 80,97,281/- within 15 days to continue the appeal against DRT order.
What did the court decide?
Deposit of Rs. 80,97,281/- (50% of claimed amount) required within 15 days to continue appeal; otherwise appeal rejected.
What the court decided
IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 284/2022 In
A.IR:148/2022
M/S Chennai Auto Spares V/S Idfc First Bank
27/10/2022
This application is filed seeking waiver of statutory deposit Counter of respondent bank filed.
Heard Ld. Counsel for appellant.
This appeal is preferred challenging final order dated 31.3.2022 in SA 348/2019 on the file of DRT-II, Chennai. According to Section 13(2) Notice dated 20.4.2019, amount claimed is Rs.1,61,94,562.41p as on 18.4.2019 and appellant has not made any payments after issuance of 13(2) notice. As per Section 18 of SARFAESI Act, appellant has to deposit 50% of the amount claimed by the secured creditor for entertaining the appeal and the same can be reduced to 25% by recording reasons.
As seen from the affidavit filed in support of the petition, I do not find any valid grounds for reducing the statutory deposit from 50% to 25%.
Therefore, considering the facts of the case and the affidavit filed in support of the application, appellant shall deposit 50% of 13(2) notice amount of Rs.1,61,94,562.41p which comes of Rs. 80,97,281.21p, rounded off to Rs.80,97,281/- within 15 days from today, i.e., on or before 10.11.2022 failing which, appeal stands rejected.
Issues for consideration
1 issue framed by the court
Whether the statutory deposit under Section 18 of SARFAESI Act can be reduced from 50% to 25% in this case.
Parties & counsel
- applicant
M/S Chennai Auto Spares
- respondent
Idfc First Bank
Coram
Chairperson
Case details
As recorded by the court registry
All orders in this case
12 orders share this CNR
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