P K Kerala Varma v. State Bank of India

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

IA 100/2023 In AIR101/2023

PK Kerala Varma Vs A.O., SBI

09/03/2023

This application is filed to take up IA 101/2023 (waiver) on urgent basis. Advocate Shri M.L. Ganesh filed vakalath for respondent bank and reported no objection.

In view of the same, this application is allowed.

IA 101/2023 (waiver):

IA 100/2023 (Urgent) is allowed and this petition is taken up for hearing.

This application is filed seeking waiver of statutory deposit under Section 21 of RDDB & FI Act.

It is not in dispute that recovery certificate is issued against appellant for a sum of Rs.20.00 lakhs vide order of Tribunal below dated 17.9.2001 with interest at 15.5% p.a. from the date of suit i.e., 30.11.1990 till realization.

Advocate for appellant requested that as appellant is 86 years old, statutory deposit may be reduced to 25%. On the other hand, advocate for respondent bank opposed and submitted that huge amount is due from appellant and while directing appellant to deposit 50%, interest granted is also to be taken into consideration as per decision of Hon’ble Supreme Court of India dated 5.1.2023 in re , “Sidha Neelkanth Paper Industries Vs. Prudent ARC Limited” and referred to paragraph 16 of the said decision. It is further submitted that appellant has to deposit 50% of amount determined in recovery certificate with interest for entertaining the appeal. In reply, advocate for appellant submitted that respondent bank has received a sum of Rs.1.50 crores after issuance of recovery certificate and this amount may be taken into consideration for determining the statutory deposit, to which, advocate for respondent bank submitted that there are two OAs, one against guarantor who is appellant herein and the other is against principal borrower and amount of deposit referred to by advocate for appellant is received from borrower and same is not related to appellant.