Ms South India Packaging v. Canara Bank
Case brief
What is this about?
This common order rejected the appellants' request to reduce the statutory deposit under the SARFAESI Act from 50% to 25%. The court held that the sale of mortgaged property is not a valid ground for reduction. It directed a 50% deposit of the adjusted claim amount within two weeks.
What did the court decide?
Directing appellants to deposit 50% of the adjusted claim amount of Rs. 42,03,905/- within two weeks for entertaining appeals.
IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 132/2022 In A.IR:67/2022
South India Packing & Ors V/S Canara Bank & Ors
12/12/2022
COMMON ORDER
These Appeals, viz., A.IR:67/2022 and A.IR:68/2022 are filed against a Common Order dated 25.02.2022 of DRT-II, Chennai, in SA 286/2019 and SA 417/2019, respectively.
IA 132/2022 in A.IR:67/2022 and IA 133/2022 in A.IR:68/2022 respectively, are filed seeking waiver of statutory deposit required under Section 18(1) of SARFAESI Act, 2002, for entertaining the Appeals.
Heard both sides.
Advocate for Petitioners/Appellants submitted that mortgage property is already sold and possession is also taken, and excess amount is lying with 1st Respondent Bank, and taking the same into consideration, statutory deposit may be reduced to 25%.
On the other hand, Counsel for 1st Respondent Bank opposed, and submitted that, law contemplates deposit of 50% of amount claimed by Secured Creditors and Petitioners/Appellants have not made out any grounds to reduce the statutory deposit.
Issues for consideration
2 issues framed by the court
Whether the statutory deposit percentage under Section 18(1) of SARFAESI Act can be reduced from 50% when the mortgaged property has already been sold and possession taken.
Whether the claim amount should be calculated after deducting a separate deposit made with DRT for stay.
Parties & counsel
- appellant
South India Packing & Ors
- respondent
Canara Bank
Coram
Chairperson
Case details
As recorded by the court registry
- Court
- DRAT
- Decided on
- · December
- CNR
- 331090000672022
- Topic
- Banking and Recovery
All orders in this case
7 orders share this CNR
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