M/S M P Bullion v. Pegasus Assets Reconstruction Pvt. Ltd. and Ors.

Appeal Dy. No. 1179/2022 Date: 12.07.2023

M/s M. P. Bullion Vs. Pegasus Assets Reconstruction Pvt. Ltd. & Ors.

Present: Shri Kashif Zaidi, counsel for the appellant, Shri Abhinav Gaur, counsel for the respondent no. 1, Shri V. K. Shukla, counsel for the respondent no. 3,

The present appeal has been filed under section 18 of the SARFAESI Act against the final order dated 10.10.2022 passed by the DRT, Jabalpur in S.A. No. 387 of 2020.

In the present case, the appellant has not deposited any amount towards minimum deposit of 25% of the amount due, which is mandatory in nature in view of the third proviso of section 18 of the SARFAESI Act, as the amount realized by the Bank from auction sale of the property of the appellant cannot be taken into consideration towards pre-deposit in view of the judgment passed by the Hon’ble Apex Court in Civil Appeal No. 8969 of 2022- M/s Sidha Neelkanth Paper Industries Private Limited & Another Vs. Prudent ARC Limited & Others decided on 05.01.2023 .

In the waiver application, the learned counsel for the appellant has stated that the property has been auctioned by the respondent-bank, but the same cannot be considered towards pre-deposit in view of the judgment as referred to above. Therefore, the appellant is directed to deposit 25% of the amount due, which is mandatory in nature, by the next date fixed for entertaining the appeal. If the appellant does not deposit the said amount prior to the next date fixed, the appeal shall stand dismissed as not entertainable for want of mandatory pre-deposit without further reference to this court. If the said amount is deposited by the appellant within the stipulated period, list this case on 30.10.2023 for hearing on waiver of the rest 25% of the amount due.