Disposed

Shri Vilas S/O Ishwarrao Bhende v. Punjab National Bank

DRAT17 Nov 2023IA/761/2023

Case brief

AI extract

What is this about?

The Division Bench considered an interim application filed by appellants to reduce the pre-deposit under Section 18(1)(iii) of the SARFAESI Act. The Tribunal refused the request for reduction to 25% due to lack of material evidence but directed a deposit of ₹40,00,000/- in two instalments. Upon compliance, an injunction on the residential property was granted subject to payment terms.

What did the court decide?

Appellants directed to deposit ₹40,00,000 in two equal instalments; injunction granted conditionally upon payment.

Shri Vilas S/O Ishwarrao Bhende versus Punjab National Bank — Execution and Attachment | DRAT (2023)

¶1

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

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I.A. No. 761/2023 (WoD) In

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Appeal on Diary No. 2015/2023

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Between

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Vilas S/o Ishwarrao Bhende & Anr. … Appellant/s V/s.

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Punjab National Bank & Anr. Mr. Piyush Pendke, Advocate for Appellants. Mr. Suraj Haralkar, Advocate for Respondent.

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…Respondent/s

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

¶9

The Appellants are in appeal impugning the order dated 09.10.2023 in I.A. No. 2026/2023 in Securitisation Application(S.A.) No. 194/2022 on the files of the Debts Recovery Tribunal, Nagpur (D.R.T) wherein the Ld. Presiding Officer refused to grant any interim reliefs to the Appellants to protect the secured assets belonging to them.

¶10

The allegations against the Respondent Bank is that after had accepted the OTS proposal they backed out from that proposal even before the stipulated time was over thereby preventing the Appellants from making the payments in accordance with the proposal. The Ld. Presiding Officer was not enthused by the submission made by the Appellants and therefore, rejected the prayers and as well as the I.A.

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The Ld. Counsel appearing for the Respondent Bank submits that there was no time enough for filing an objection/reply to the application for a waiver but as of date, the amount due is about ₹ 97,00,000/- is due and that the sale of the secured assets has already taken place and the property had been successfully auctioned. The sale has been confirmed and therefore, as per the latest decision of the Hon’ble Supreme Court of India Sidha Neelkanth Paper Industries Pvt. Ltd. & Ano. vs. Prudent ARC Ltd & Ors., 2023 OnLine SC 12. The Appellant who is challenging the entire proceedings up to the sale of the property is liable to pay 50% of the amount that is due inclusive of the interest as of the date of filing of the appeal for entertaining this appeal.

¶13

The Ld. Counsel appearing for the Appellants submits that the Appellants are not in a position to pay 50% of the amount and therefore seeks indulgence of this Tribunal to reduce the amount to the minimum of 25% of the debt due. There are no materials produced by the Appellants in support of their contentions regarding financial strain.

¶14

Under the circumstances it is not possible to exercise the jurisdiction of this Tribunal under the third proviso to Sec. 18(1) of the SARFAESI Act to reduce the amount to a minimum of 25%. The Appellants are therefore directed to deposit a sum of ₹ 40,00,000/- as pre-deposit in two equal instalments.

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The 1^st instalment of ₹ 20,00,000/- shall be payable within two weeks and the 2^nd instalment of ₹ 20,00,000/- shall be payable within two weeks therefrom, as stated hereunder.

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Numbers of Instalments	Payment on or before
1^stInstalment	01.12.2023
2^ndInstalment	15.12.2023

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On payment of the 1^st instalment as directed, the Appellants shall be entitled to get an injunction with regard to the Sarfaesi measures initiated against the residential building of the Appellants. In default of payment of the instalments on time, 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 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 04.12.2023 for reporting compliance concerning the payment.

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rm-18

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Shri Vilas S/O Ishwarrao Bhende v. Punjab National Bank

Case brief

What is this about?

What did the court decide?

Shri Vilas S/O Ishwarrao Bhende v. Punjab National Bank

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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