Dismissed

State Bank of India v. Indhumathi Refineries Private Ltd.

DRAT5 Jul 2022

Case brief

AI extract

What is this about?

The Debt Recovery Appellate Tribunal at Chennai dismissed a waiver application as infructuous. The Court held that no grounds existed to reduce the mandatory 50% statutory deposit of Rs.20,23,44,818/- required for entertaining the appeal against a demand notice. The appeal stands liable for rejection unless the deposit is made by 18.07.2022.

What did the court decide?

Petition for waiver of deposit dismissed; appellant directed to deposit Rs.20,23,44,818/- within two weeks or face automatic rejection of appeal.

State Bank of India versus Indhumathi Refineries Private Ltd. — Banking and Recovery | DRAT (2022)

¶1

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

¶2

IA 226/2022 & IA 221/2022

¶3

In A.IR:154/2022

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M/S Capital Clothing Co & Ors V/S A.O.,Union Bank Of India

¶5

05/07/2022

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IA 226/2022 filed by Petitioners/Appellants for hearing the case on urgent basis is dismissed as infructuous .

¶7

IA 226/2022 (Urgent) is dismissed as infructuous .

¶8

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

¶9

Heard both sides and perused record.

¶10

Petitioners/Appellants in Para 4 of the Affidavit filed in support of Petition stated that during the financial year 2016-2017, their turnover was more than Rs.52 Crores and only because of the fraudulent actions of officials of Respondent Bank, the Petitioners/Appellants were put to sever loss and their business were crushed. Except saying that, no supporting material is produced to show that Petitioners/Appellants sustained loss subsequent to the financial year 2016-2017.

¶11

For Petition under Section 18(1) of SARFAESI Act, 2002, law contemplates deposit of 50% of amount claimed by Secured Creditors and Tribunal is vested with power to reduce the same upto 25% by recording the reasons.

¶12

As I do not find any grounds or reasons for reducing the statutory deposit, Petitioners/Appellants shall deposit 50% of amount claimed by Secured Creditor in Demand Notices issued under Section 13(2) of SARFAESI Act, 2002, which is Rs.40,46,89,636/-, for entertaining the Appeal.

¶13

For the above reasons, Petitioners/Appellants shall deposit 50% of Rs.40,46,89,636/-, which comes to Rs.20,23,44,818/-, within a period of two weeks from today i.e., on or before 18.07.2022.

¶14

It is made clear that failure to deposit of above amount, on or before 18.07.2022, the Appeal shall stand automatically rejected. On making such deposit by Petitioners/Appellants, Registrar is to invest the same in a Nationalized Bank, from time to time till further orders are passed.

¶15

Post the case on 19.07.2022, for compliance of payment.

¶16

Sd/-

¶17

Chairperson

State Bank of India v. Indhumathi Refineries Private Ltd.

Case brief

What is this about?

What did the court decide?

State Bank of India v. Indhumathi Refineries Private Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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