A K Jaya Prakash v. Bank of India
Case brief
What is this about?
This interim order addresses the statutory deposit requirement under Section 18 of the SARFAESI Act. The bench directed the appellant to deposit 25% of the demanded amount as security for entertaining the appeal against the DRT order.
What did the court decide?
Directed appellant to deposit Rs. 2,88,78,390 within two weeks; failing which appeal stands rejected.
What the court decided
IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 417/2022 In A.IR:346/2022
A.K.Jaya Prakash & Ors V/S A.O.,Bank Of India
18/04/2023
This application is filed seeking waiver of statutory deposit required under Section 18 of SARFAESI Act.
Appellants have preferred this appeal against order dated 26.8.2022 of DRT, Coimbatore in IA 3348/2022 in SA 820/2022.
It is not in dispute that amount demanded is Rs.11,55,13,559.13p as on 1.4.2019.
Advocate for appellants submitted that Tribunal below directed appellants to deposit a sum of Rs.6.50 crores in two instalments for granting an interim order. It is submitted that considering reasons stated in the affidavit filed in support of petition, statutory deposit may be waived.
On the other hand, advocate for respondent bank opposed and submitted that as per Section 18 of SARFAESI Act, 50% has to be deposited for entertaining the appeal and this Tribunal is vested with powers to reduce it upto 25% and appellants have not made out any grounds for reduction.
Considering submission of both sides, as order under challenge is against an interim order, I am of the view that directing appellants to deposit 25% of amount demanded would meet requirement under Section 18 of SARFAESI Act for entertaining the appeal. Admittedly, amount demanded is Rs.11,55,13,559.13p and 25% of the same comes to Rs.2,88,78,389.80p.
Issues for consideration
2 issues framed by the court
Whether the statutory deposit required under Section 18 of SARFAESI Act needs to be waived for entertaining the appeal.
Whether the deposit can be reduced to 25% of the amount demanded instead of 50%.
Parties & counsel
- appellant
A.K.Jaya Prakash & Ors
- respondent
A.O.,Bank Of India
Coram
Chairperson
Case details
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