Allowed

Mr Timothy John Kamlakar v. Saraswat Cooperative Bank Limited

DRAT6 Oct 2023IA/675/2023

Case brief

AI extract

What is this about?

The Debt Recovery Appellate Tribunal allowed an interim application to entertain an appeal against a DRT order, directing the appellants to deposit a specific pre-deposit amount under S. 18(1) of the SARFAESI Act to stay proceedings.

What did the court decide?

Stay of further proceedings concerning the property pending payment of pre-deposit and filing of reply by respondent.

Mr Timothy John Kamlakar versus Saraswat… — Civil Procedure and Limitation | DRAT (2023)

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BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present: Mr Justice Ashok Menon, Chairperson I.A. No. 675/2023(WoD)

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Appeal on Diary No. 1789/2023

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Between

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Mr. Timothy John Kamlakar & Anr. … Appellant/s V/s.

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Saraswat Co-operative Bank Ltd. …Respondent/s

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Mr. Sunil Humbre, i/b Ms. Mumtaz Khan, Advocate for Appellant. Mr. Vinay Deshpande, i/b M/s. V. Deshpande & Co., Advocate for Respondent.

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-: Order dated: 06/10/2023:-

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The matter is taken up for hearing by way of praecipe filed by Appellant for seeking urgent relief.

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The Appellants are in appeal challenging the disposal of S.A. No. 122/2023 order dated 31.03.2023 on the files of Debts Recovery Tribunal-II, Mumbai (D.R.T) on the basis of an undertaking which was submitted by both sides before the D.R.T.

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The Appellant could not comply with the undertaking which was given and the possession was undertaken to be given without any demur to the Respondent Bank in the case of breach of undertaking given in writing by the Counsel appearing for the Appellants under instructions.

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The Appellants do not appear to have any prima facie case for maintaining this appeal, but in order to entertain this appeal the Appellants will have to comply with the pre-deposit contemplated

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under Sec. 18 (1) of the SARFAESI Act. The Appellants have already paid a sum of ₹ 21,50,000/- in instalments and as of date there still remains a sum of ₹ 26,13,781.32/- payable by them. Even though the Appellants do not have any prima facie case. Hence, it is also not possible to reduce the amount exercising the jurisdiction of this Tribunal under the third proviso of Sec. 18 (1) by keeping it to the minimum of 25%.

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In order to entertain the appeal the Appellants will have to deposit a sum of ₹ 13,00,000/- as pre-deposit. The Ld. Counsel appearing for the Appellants undertakes to deposit a sum of ₹ 5,00,000/- today before 4.00 p.m. The balance amount of ₹ 8,00,000/- shall be deposited in two equal instalments of ₹ 4,00,000/- each, which shall be deposited as stated hereunder.

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Numbers of Instalments Payment on or before 1^st Instalment 20.10.2023 2^nd Instalment 03.11.2023

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Given the undertaking given by the Appellants, in case the amount of ₹ 5,00,000/- is deposited today, there shall be a stay of the further proceedings concerning the property till the next date of hearing. The fact be informed to the bank by the Ld Counsel. The Appellant also undertook to approach the Respondent Bank for settling the entire dues.

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In default of payment of the instalments, the Appeal shall stand dismissed, without any further reference to this Tribunal.

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The amount shall be deposited in the form of a Demand Draft

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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 nationalised 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 is at liberty to file a reply in the Appeal with an advance copy to the other side.

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Post on 23.10.2023 for reporting regarding the 1^st instalment.

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Sd/Chairperson

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rm-11

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Mr Timothy John Kamlakar v. Saraswat Cooperative Bank Limited

Case brief

What is this about?

What did the court decide?

Mr Timothy John Kamlakar v. Saraswat Cooperative Bank Limited

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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