The Tribunal allowed an application seeking waiver of the statutory deposit for entertaining an appeal. It directed the appellants to deposit 25% of the amount in the Sale Notice (Rs. 1,10,86,139/-) within two weeks.
Directed deposit of Rs. 1,10,86,139/- (25% of Sale Notice amount) within two weeks.
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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 189/2023 in
A.IR:95/2023
M/S Dhanalakshmi Timbers &Ors V/S Karur Vysya Bank &Anr
08/09/2023
This application is filed seeking waiver of statutory deposit required under Section 18 of SARFAESI Act, for entertaining the Appeal.
Heard both sides.
Advocate for petitioners/appellants submitted that amount claimed in Section 13(2) Notice is Rs.4,11,61,625.28p as on 10.2.2022. It is submitted that subsequently, respondent bank has issued Sale Notice claiming a sum of Rs.4,43,44,556.89p and said notice is challenged by SA No.30/2023. It is submitted that present appeal is filed against an interim order, where Tribunal below directed to deposit 50% of outstanding dues. It is further submitted that after 13(2) notice a sum of Rs.17.00 lakhs was paid and considering these aspects, petitioners/appellants may be permitted to deposit 25% of notice amount towards statutory deposit.
Advocate for respondent bank submitted that amount indicated in Sale Notice is after deducting Rs.17.00 lakhs paid subsequent to issuance of Section 13(2) Notice. It is submitted that no valid grounds are made out for reducing statutory deposit.
I have perused the material papers and impugned order dated 27.1.2023. As appeal is against an interim order, I am of the view directing petitioners/appellants to deposit 25% of amount indicated in Sale Notice would meet the requirement under Section 18 of the SARFAESI Act, which comes to Rs.1,10,86,139.20p
Therefore, petitioners/appellants shall deposit Rs.1,10,86,139.20p, rounded off to Rs.1,10,86,139/- within two weeks from today i.e., on or before 22.9.2023, failing which, appeal stands rejected.
On making such deposit, Registrar shall invest the same in a Nationalized Bank for a reasonable period and renew it periodically, till further orders are passed.
Post the matter on 25.9.2023 for compliance of deposit.
Sd/-
Chairperson
1 issue framed by the court
Whether partial deposit of 25% of the Sale Notice amount warrants the statutory deposit under Section 18 of the SARFAESI Act for entertaining an appeal against an interim order?
2 provisions across 1 enactments
M.S. Dhanalakshmi Timbers & Ors
Karur Vysya Bank & Anr
Chairperson
As recorded by the court registry
19 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
