Disposed

Ms Premier Distilleries Private Limited Managing Director Mr Sekar Kumaraswamy v. State Bank of India

DRAT26 Sept 2022

Case brief

AI extract

What is this about?

The Debt Recovery Appellate Tribunal at Chennai allowed the appellants to file an appeal by directing a reduced security deposit of Rs.1,82,63,275/-, calculated as 50% of the claim balance after deducting subsequent payments made after the Section 13(2) Notice.

What did the court decide?

Directing the appellants to deposit Rs.1,82,63,275/- within 15 days calculated as 50% of the claim after deducting subsequent payments.

Ms Premier Distilleries Private Limited Managing Director Mr… — Banking and Recovery | DRAT (2022)

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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

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A.IR:81/2022

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Premier Distilleries Pvt Ltd & Ors V/S A.O.,State Bank Of India & Ors

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26/09/2022

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

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Appellants preferred this Appeal under Section 18 of SARFAESI Act, 2002, challenging Order dated 25.02.2022 in SA 128/2021 passed by DRT-I, Chennai.

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Heard Learned Advocates of both parties including Respondent No.2, Auction Purchaser.

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Learned Advocate for Petitioners/Appellants submitted that as per Section 13(2) Notice dated 09.06.2017, claim of 1^st Respondent is Rs.13,45,79,284/- as on 08.06.2017. He submitted that subsequent to said Notice, Petitioners/Appellants made certain payments which are mentioned in Memo dated 22.09.2022, and total of subsequent payments made by Petitioners/Appellants comes to Rs.9,80,52,734/-. He submitted that Petitioners/Appellants deposited more than 50%, and considering the same, statutory deposit may be reduced to 25%.

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Advocate for 1^st Respondent Bank opposed, and submitted that, payment reflected in the Memo are correct, and they are subsequent to Notice issued under Section 13(2) of SARFAESI Act, 2002. He further submitted, they have not made any grounds to reduce statutory deposit from 50%.

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I have perused material papers including Affidavit and also Memo dated 22.09.2022.

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As per proviso to Section 18(1) of SARFAESI Act, 2002, for entertaining the Appeal, Petitioners/Appellants shall deposit 50% of the amount of debt due from borrower as claimed by Secured Creditor. As per Notice issued under Section 13(2) of SARFAESI Act, 2002, amount claimed by Secured Creditor is Rs.13,45,79,284/-. When there is subsequent payments after 13(2) Notice, that amount has to be deducted from the amount claimed in Section 13(2) Notice to arrive at claim of Secured Creditor. On doing so, (Rs.13,45,79,284/minus Rs.9,80,52,734/-) it comes to Rs.3,65,26,550/-. Therefore, Petitioners/Appellants

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have to deposit 50% of Rs.3,65,26,550/-, for entertaining the Appeal, which comes to Rs.1,82,63,275/-.

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Considering these aspects, Petitioners/Appellants are directed to deposit Rs.1,82,63,275/within 15 days from today i.e., on or before 10.10.2022.

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It is made clear that failure to deposit of above amount, on or before 10.10.2022, the Appeal shall stand rejected. 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.

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Post the case on 11.10.2022, for reporting compliance of deposit.

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Sd/Chairperson

Ms Premier Distilleries Private Limited Managing Director Mr Sekar Kumaraswamy v. State Bank of India

Case brief

What is this about?

What did the court decide?

Ms Premier Distilleries Private Limited Managing Director Mr Sekar Kumaraswamy v. State Bank of India

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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