Disposed

Dinesh Gandaji Lakhvara and Ors. v. a U Small Finance Bank Ltd. and Ors.

DRAT15 Mar 2023

Case brief

AI extract

What is this about?

The Appellate Tribunal allowed urgent relief by directing appellants to deposit a sum of INR 8 lacs as a pre-deposit before entertaining the appeal under the SARFAESI Act. This direction was granted despite the bank's opposition, following a partial payment made by the appellants on the hearing day.

What did the court decide?

The appellants were directed to deposit INR 8 lacs as pre-deposit; breach of payment would lead to dismissal. Further recovery measures were stayed pending compliance.

Dinesh Gandaji Lakhvara and Ors. versus a U Small Finance… — Banking and Recovery | DRAT (2023)

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BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present: Mr Justice Ashok Menon, Chairperson

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I.A. No. 168/2023 (WoD)

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Appeal on Diary No. 381/2023

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Between

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Dinesh Gandaji Lakhvara & Ors. … Appellant/s V/s. A.U. Small Finance Bank Ltd. & Ors. …Respondent/s

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Mr Sachin Kaikini, i/b Mr Dhrumit D. Chauhan, Advocate for Appellants.

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Mr Sanjay Anabhawane, i/b M/s. M & S Legal Ventures, Advocate for Respondent No. 1.

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-: Order dated: 15/03/2023:-

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The matter is taken up for hearing by way of praecipe dated 14.03.2023 filed by the Appellants seeking urgent relief. The Ld. Counsel appearing for the Appellants submits that the Appellants are willing to settle the entire dues with the first Respondent Bank but due to some reasons, the O.T.S. proposal failed and therefore, they may be given an opportunity to entertain the appeal by receiving the amount towards pre-deposit.

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The Ld. Counsel appearing for the Respondent No. 1 Bank has vehemently opposed the application for waiver by stating that the amount due from the Appellants as of date is ₹19.69 lacs and they should be asked to pay 50% of that amount in order to entertain the appeal. To invoke the discretionary power of this Tribunal under the 3^rd proviso to under Sec. 18(1) of the

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SARFAESI Act, there must be a specific pleading regarding a prima facie case in favour of the Appellants and secondly that they are under financial strain. There are absolutely no pleadings in that regard in the application under the waiver and therefore, it may not be possible to grant any reliefs to the Appellants regarding the mandatory pre-deposit to be made. The Appellant are, therefore, directed to deposit a sum of ₹8 lacs by way of pre-deposit. The Ld. Counsel appearing for the Appellants offers by demand draft for ₹2 lacs today. The balance of ₹6 lacs shall be deposited in two equal instalments of ₹3 lacs each. The first instalment shall be payable within a period of two weeks, on or before 29.03.2023 and the second instalment shall be payable within two weeks therefrom, on or before 13.04.2023. Since the Appellants have already deposited ₹2 lacs today, there shall be a stay of further Sarfaesi measures with regard to the secured assets, and breach of payment of the subsequent instalments shall entail in dismissal of the appeal without further reference to this Tribunal.

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The amount shall be deposited in the form of a Demand Draft with the Registrar of this Tribunal.

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As and when the said amounts are deposited, they shall be invested in term deposits in the name of Registrar, DRAT, Mumbai, with any nationalized bank, initially for 13 months, and thereafter to be renewed periodically.

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With these observations, the I.A. is disposed of. The Respondent Bank is at liberty to file a reply in the Appeal with an advance copy to the other side.

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Post on 30.03.2023 for reporting compliance concerning the payment of the first instalment.

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Sd/Chairperson

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mks-4

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Dinesh Gandaji Lakhvara and Ors. v. a U Small Finance Bank Ltd. and Ors.

Case brief

What is this about?

What did the court decide?

Dinesh Gandaji Lakhvara and Ors. v. a U Small Finance Bank Ltd. and Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

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