This order grants an interim stay on SARFAESI proceedings upon the deposit of a pre-deposit amount of ₹20 crores by the appellants, exercisable under the Tribunal's discretionary jurisdiction despite the general rule requiring a 50% deposit.
Pre-deposit of ₹20 crores in two instalments directed; stay on further SARFAESI proceedings until deposit is made.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present: Mr Justice Ashok Menon, Chairperson
I.A. No. 574/2022 (WoD)
In Appeal on Diary No. 588/2022
Between
Jineshkumar Jayantilal Shah & Ors. … Appellant/s V/s.
Bank of India & Ors. …Respondent/s
Mr Rishabh Shah & Mr Harjot Singh, i/b M/s. Raval-Shah & Co., Advocate for Appellant.
Ms Mittal S. i/b M/s. M.V. Kini & Co., Advocate for Respondent No. 1 & 2.
Ms Abhineeta Chaturvedi, Advocate for Respondent No.4.
-: Order dated: 09/01/2023:-
This is an application filed under Sec. 18 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (‘SARFAESI Act’, for short) requesting to invoke the discretionary jurisdiction of this Tribunal under the 3rd proviso to Sec. 18 to keep the mandatory pre-deposit at the minimum of 25% of the amount demanded or due.
1
under Sec. 13 (2), and the taking of physical possession under Sec. 14 as also the consequent auction sale stand challenged in the aforesaid SA filed by the Appellants. The S.A. was allowed in part by the Ld. PO, vide impugned Judgment dated 07/07/2021, setting aside the auction sale finding infirmity with the auction procedures but declined to find fault with the other Sarfaesi measures as requested in the aforesaid S.A. Aggrieved by that finding, the Appellants are in appeal.
2
inclusive of interest that is claimed on the debt due to the creditors inclusive of interest as of the date of appeal is about ₹50 crores.
3
pay a sum of ₹20 crores as pre-deposit in two equal instalments of ₹10 crores each. The 1st instalment shall be paid within three weeks from today, payable on or before 30.01.2023. And, the 2nd instalment shall be payable within three weeks therefrom, payable on or before 20.02.2023. In default, the Appeal shall stand dismissed without any further reference to this Tribunal.
Post on 31.01.2023 for reporting compliance concerning the payment of the first instalment.
mks-2
Sd/Chairperson
4
1 issue framed by the court
Whether the discretionary jurisdiction under the third proviso to Section 18 of the SARFAESI Act can be exercised to reduce the mandatory pre-deposit from 50% to 25%.
1 provisions across 1 enactments
Jineshkumar Jayantilal Shah & Ors.
Bank of India & Ors.
Ashok Menon
As recorded by the court registry
5 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
