The Tribunal fixed the pre-deposit requirement for entertaining an appeal against SARFAESI proceedings where the application did not allege financial strain or deserving circumstances for a reduced deposit of 25%.
Direction to deposit 1.35 crores as pre-deposit within six weeks; stay of SARFAESI proceedings on payment of amount.
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BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present: Mr Justice Ashok Menon, Chairperson
I.A. No. 278/2023 (WoD) In Appeal on Diary No. 571/2023
Between
M/s Geetanjali Kelavani Mandal & Ors. … Appellant/s V/s.
The Authorised Officer, M/s Religare Finvest Ltd. …Respondent/s
Mr Sachin Kaikini, i/b Mr Sikandar M Pathan & Ms Sophia F Pathan, Advocate for Appellants.
Ms Dimple Tejani, i/b M/s M & S Legal Ventures, Advocate for Respondent.
The first Appellant is a charitable trust. The second Appellant is its secretary while the third Appellant is a trustee. The Appellants had borrowed a sum of ₹3.33 crores from the Respondent Financial Institution in 2016 to run the school and charitable institution situated in rural Vadodara. Repayments were defaulted which resulted in the account being classified as a non-performing asset (NPA) on 31.10.2018. The demand notice was issued to the Appellants demanding a sum of ₹2,76,19,647.91 as on 15.11.2018. The amount was not paid on time in consequence of which symbolic possession was taken on 29.08.2018 under Sec. 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security
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Interest Act, 2002 (“SARFAESI Act”, for short). Thereafter, orders were obtained under Sec. 14 from the District Magistrate on 13.11.2020 in consequence of which the Respondent Financial Institution took physical possession and it is submitted that an agency is now running the school.
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permissible. The Appellants have not pleaded any financial strain in their application and therefore, it is not possible for this Tribunal to reduce the amount of deposit to the minimum of 25%, exercising its jurisdiction under the third proviso to Sec. 18(1) of the SARFAESI Act. The Appellants are, therefore, directed to deposit a sum of ₹1.35 crores as pre-deposit for entertaining the appeal. The said amount shall be deposited within six weeks i.e. on or before 30.08.2023. Failure to pay the said amount shall entail in dismissal of the appeal without any further reference to this Tribunal.
Post on 31.08.2023 for reporting compliance concerning the payment.
mks-5
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1 issue framed by the court
Whether the appellants are required to make a pre-deposit under Section 18(1) of the SARFAESI Act to file the appeal.
1 provisions across 1 enactments
M/s Geetanjali Kelavani Mandal & Ors.
The Authorised Officer, M/s Religare Finvest Ltd.
Ashok Menon
As recorded by the court registry
6 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
