Vippin Aggarwal v. Indian Overseas Bank
Case brief
What is this about?
The Tribunal upheld a previous direction requiring the appellant to deposit ₹15 crores as pre-deposit. It held that unfulfilled One-Time Settlement conditions and auction sale proceeds do not reduce the threshold for pre-deposit calculation when challenging asset sale.
What did the court decide?
Directed the appellant to deposit ₹15 crores as pre-deposit within three weeks or face dismissal of the appeal.
What the court decided
BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present : Mr. Justice Ashok Menon, Chairperson
I.A. No. 344/2022 (WoD) In Appeal on Diary No. 486/2022
Between
Mr. Vippin Aggarwal … Appellant/s V/s. Indian Overseas Bank & Ors. …Respondent/s
Mr Puneet Gogad, Advocate for Appellant.
Ms Vaishali Bhilare, Advocate for Respondent Bank.
Mr Nishant Rana along with Ms Rupa Patel & Ms Chinmayee Ghag, i/b Zastriya, Advocate for Respondent No. 4 to 6.
- This is an application filed by the Appellant under section 18 (1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (‘SARFAESI Act’ for short) seeking a complete waiver of the mandatory pre-deposit under the 2nd proviso to section 18 (1) of the SARFAESI Act and in the alternative to reduce the amount to the minimum of 25% exercising discretion of this Tribunal under the 3rd proviso to section 18 (1).
- The appeal impugns the order of DRT-II, Mumbai in IA No. 425/2021 in SA No. 118 of 2022 dated 20/05/2022 dismissing the aforesaid interlocutory application seeking an amendment to the SA on the basis of a subsequent event of issuance of sale notice and conducting of sale of the secured assets.
Issues for consideration
2 issues framed by the court
Whether the One-Time Settlement amount paid by the principal borrower and the auction sale proceeds can be deducted to waive or reduce the mandatory pre-deposit for challenging SARFAESI measures.
Whether an OTS proposal without fulfillment of conditions regarding possession handover and case withdrawal can be utilized to reduce the pre-deposit liability.
Parties & counsel
- appellant
Mr. Vippin Aggarwal
- respondent
Indian Overseas Bank
- respondent
Respondent No. 4
- respondent
Respondent No. 5
- respondent
Respondent No. 6
Case details
As recorded by the court registry
All orders in this case
5 orders share this CNR
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