Ms South India Packaging v. Canara Bank
Case brief
What is this about?
The Debt Recovery Appellate Tribunal Bench fixed the statutory deposit at 50% of the reduced claim amount (Rs.42,03,905) for entertaining appeals, rejecting the argument that reduced possession status or prior stay deposit warrants a lower rate.
What did the court decide?
Petitioners directed to deposit Rs.42,03,905 as statutory deposit within two weeks; failure to deposit shall result in rejection of appeals.
What the court decided
IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 133/2022 In A.IR:68/2022
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
3 issues framed by the court
Whether the statutory deposit required for entertaining appeals under Section 18(1) of the SARFAESI Act can be reduced to 25% considering the mortgage property has been sold and possession taken.
Whether a sum already deposited for stay orders can be deducted from the claim amount to determine the 50% statutory deposit.
When shall the appellants make the required deposit for entertaining the appeals filed against the Common Order of DRT-II, Chennai.
Parties & counsel
- appellant
South India Packing & Ors
- respondent
Canara Bank & Ors
Coram
Chairperson
Case details
As recorded by the court registry
- Court
- DRAT
- Decided on
- · December
- CNR
- 331090000682022
- Topic
- Banking and Recovery
All orders in this case
7 orders share this CNR
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