The Tribunal disposed of an interim application seeking waiver of the pre-deposit required for an appeal under the SARFAESI Act. The Court ordered a deposit of ₹25 lakhs within eight weeks, declining to reduce the amount due to lack of income proof despite medical claims.
Appellants directed to deposit ₹25 lakhs within eight weeks; appeal to be dismissed if not complied.
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BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present: Mr Justice Ashok Menon, Chairperson
I.A. No. 268/2022 (WoD)
In Misc. Appeal No. 88/2022
Between
Raj Décor & Ors. … Appellant/s V/s. Bank of Baroda & Anr. …Respondent/s
Mr Puneet Gogad, Advocate for Appellants.
Mr Shadab i/b Mr R.L. Motwani, Advocate for Respondent No.1.
-: Order dated: 01/05/2023:-
This is an application filed by the Appellants seeking a waiver of the pre-deposit to be made under Sec. 18(1) of the SARFAESI Act. The appeal was filed challenging the impugned order of the D.R.T.-II, Ahmedabad in dismissing S.A. No. 518/2019 on the files of the Tribunal declining to condone the delay of 199 days in filing the S.A. The Appellants had raised various grounds mainly on the ground that the second Appellant, the partner of the first Appellant firm, was suffering from cancer and hence, there was a delay in filing the S.A. The S.A. assails Sarfaesi measures mainly on the ground of not complying with the Rules required for selling the property. It is stated that Rules 8 and 9 of the Security Interest (Enforcement) Rules, 2002 have not been complied with. The notice has not been published and pasted as required. Therefore, the sale of the property which has taken place has to be set aside. The property was sold on
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18.03.2019 and the sale certificate has been issued. The amount due as per the sale certificate is ₹54,75,000/- and the Ld. Counsel appearing for the Appellants relying on the decision of the Hon’ble Supreme Court in Sidha Neelkanth Paper Industries Pvt. Ltd. vs. Prudent ARC Ltd. & Ors. 2023 SSC OnLine SC 12 contends that since the Appellants are challenging only the sale certificate, they are unable to pay the mandatory pre-deposit based on the amount mentioned in the sale certificate. The second Appellant who is a partner of the firm is allegedly suffering from cancer and had to incur heavy financial liability for treatment. The Appellants are, therefore, under financial strain. It is also submitted that the Appellants have a good prima facie case and delay ought to have been condoned. There are conflicting decisions of the various High Courts as to whether the provisions under Sec. 5 of the Limitation Act could be invoked for the purpose of condoning the delay of an application filed under Sec. 17(1) of the SARFAESI Act.
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from the Appellants. There are no grounds whatsoever to reduce the amount exercising the jurisdiction of this Tribunal under the third proviso to Sec. 18(1) of the SARFAESI Act. The Appellants have contended regarding their medical expenses incurred by the second Appellant for her treatment. The Income Tax Returns which would positively prove the income of the Appellants have not been produced and therefore, it is not possible to bring down the amount of deposit to 25% as urged by the Ld. Counsel appearing for the Appellants.
Post on 27.06.2023 for reporting compliance concerning the
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payment of pre-deposit.
Sd/Chairperson
mks-03
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2 issues framed by the court
Whether there are grounds to reduce the mandatory pre-deposit amount under the third proviso to Section 18(1) of the SARFAESI Act based on medical financial strain.
Whether the appeal shall stand dismissed if the pre-deposit is not made within the specified period.
Colour shows how this judgement treated each authority
Sidha Neelkanth Paper Industries Pvt. Ltd. vs. Prudent ARC Ltd. & Ors.Referred¶9
Sidha Neelkanth Paper Industries Pvt. Ltd. vs. Prudent ARC Ltd. & Ors. 2023 SSC OnLine SC 12
1 provisions across 1 enactments
Raj Décor & Ors.
Bank of Baroda & Anr.
Ashok Menon
As recorded by the court registry
2 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
