M/s. V.K.S. Agro Foods Hi-Tech Rice Industry v. Idbi Bank
Case brief
What is this about?
This order deals with an application to reduce the statutory deposit for entertaining appeals under the SARFAESI Act. The court rejected the request to reduce the deposit to 25% citing recent Supreme Court jurisprudence regarding sale proceeds and directed a 50% deposit.
What did the court decide?
Directed appellant to deposit Rs.2,06,43,469/- (50% of the amount in question) within two weeks.
What the court decided
IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 506/2022 in A.IR:357/2022
M/S V.K.S.Agro Foods Hi Tech Rice Industries V/S Idbi Bank Ltd &Anr
05/09/2023
These Applications are filed seeking waiver of statutory deposit required under Section 18 (1) of the SARFAESI Act, 2002, for entertaining the Appeals.
All the three Appeals are connected among same parties and arising out of a Common Order. It is represented that deposit in one Application would meet the requirements of other two Appeals also.
Main SAs are filed challenging the E-auction Sale Notice dated 19.06.2020 and Sale held on 08.07.2020.
Heard both sides.
Advocate for Petitioner/Appellant submitted, amount demanded as per Demand Notice dated 18.02.2016, is Rs.4,12,86,938.80p. It is submitted that the property is already sold and Bank has realized total amount, considering the same, statutory deposit may be reduced to 25%, for entertaining the Appeals.
Other side Advocate opposed such request.
Issues for consideration
1 issue framed by the court
Whether the statutory deposit required for entertaining appeals under Section 18(1) of the SARFAESI Act can be reduced if the secured asset has been sold and proceeds realized.
Parties & counsel
- appellant
M/S V.K.S.Agro Foods Hi Tech Rice Industries
- respondent
Idbi Bank Ltd & Anr
Coram
Chair Person
Case details
As recorded by the court registry
All orders in this case
19 orders share this CNR
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