Leela Chacko Son of Chacko and Abdulla Asees v. Canara Bank
Case brief
What is this about?
The Debt Recovery Appellate Tribunal fixed the statutory deposit for entertaining an appeal as 25% of the Section 13(2) notice amount (Rs.9,60,556/-) rather than the interim order amount. The appeal remains pending compliance.
What did the court decide?
Direction to deposit Rs.9,60,556/- within 15 days; appeal stands rejected if not deposited.
What the court decided
A compact analysis
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.
IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 297/2022
In
A.IR:186/2022
Leela Chacko V/S Canara Bank
09/02/2023
This application is filed seeking waiver of statutory deposit under Section 18 of SARFAESI Act.
Heard both sides.
Advocate for appellants submitted that appeal is preferred against an interim order passed by Tribunal below directing the appellants to pay a sum of Rs.9,62,000/- in two equal instalments i.e., first instalment of Rs.4,81,000/- on or before 4.6.2022 and second instalment of Rs.4,81,000/- on or before 5.7.2022 for granting interim relief. It is submitted that aggrieved by the said order, present appeal is preferred.
Advocate for respondent bank submitted that no grounds are made out to reduce statutory deposit, therefore, appellants have to deposit 50% of amount demanded in Section 13(2) Notice.
I have perused material papers including impugned order dated 5.5.2022. Admittedly, amount demanded in Section 13(2) Notice dated 13.8.2019 is Rs.38,42,225.65p. Since appeal is preferred against an interim order, I deem it appropriate if 25% of notice amount is paid, it would meet the requirement under Section 18 of SARFAESI Act for entertaining appeal and 25% of notice amount comes to Rs.9.60,556.41p, rounded off to 9,60,556/-.
Issues for consideration
2 issues framed by the court
Whether the requirement for statutory deposit under Section 18 of SARFAESI Act can be satisfied by paying 25% of the notice amount instead of the interim order amount in an appeal.
The quantum of deposit required to entertain an appeal against an interim order.
Parties & counsel
- appellant
Leela Chacko
- respondent
Canara Bank
Coram
Chairperson
Case details
As recorded by the court registry
- Court
- DRAT
- Decided on
- · February
- CNR
- 331090001862022
- Topic
- Banking and Recovery
All orders in this case
16 orders share this CNR
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