M/S Mars Pharmaceuticals and Ors. v. Vijaya Bank and Anr.
Case brief
What is this about?
Dy. Appeal No. 63/2019 concerning challenge to SARFAESI Act proceedings. Ordered mandatory 25% pre-deposit required for appealing; excluded auction proceeds per Apex Court precedent. Listed for hearing on waiver of remaining deposit upon condition of deposit.
What did the court decide?
Allowed application for amendment of parties to replace Vijaya Bank with Bank of Baroda. Directed appellant to deposit 25% pre-deposit before entertaining appeal on mandatory basis. Case listed on 16.
What the court decided
A compact analysis
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Appeal Dy. No. 63/2019 Date: 28.03.2023
M/s Mars Pharmaceuticals & Ors. Vs. Vijaya Bank & Anr.
Present: Shri Arvind Kumar Singh, Advocate holding brief of Shri V. K. Shukla, counsel for the appellant,
The office report dated 27.03.2023 shows that no steps have been taken by the learned counsel for the appellant for service of notice upon the respondent nos. 1, 2 & 3 inspite of several opportunities being granted and no pre-deposit has been made. Let the appellants take steps within a week for service of notice upon the respondent nos. 1, 2 & 3 as per earlier order dated 15.09.2022. Affidavit of service along with tracking report be filed by the next date
The aforesaid report further records that amendment application has been filed to amend the array of party as the Vijaya Bank has been merged with the Bank of Baroda. Accordingly, the application is allowed. Let the necessary amendment be made in the array of parties by the next date.
In the present case, the appellants have not deposited any amount towards minimum deposit of 25% of the amount due, which is mandatory in nature in view of the third proviso of section 18 of the SARFAESI Act, as the amount realized by the Bank from auction sale of the property of the appellant cannot be taken into consideration towards pre-deposit in view of the judgment passed by the Hon’ble Apex Court in Civil Appeal No. 8969 of 2022- M/s Sidha Neelkanth Paper Industries Private Limited & Another Vs. Prudent ARC Limited & Others decided on 05.01.2023 .
In the waiver application, the learned counsel for the appellants has stated that the property has been auctioned by
Issues for consideration
2 issues framed by the court
Whether the auction proceeds of the property can be considered towards the mandatory 25% pre-deposit under Section 18 of the SARFAESI Act.
Whether the appeal should be entertained without the mandatory pre-deposit and what conditions should apply for listing the waiver of the remaining deposit.
Parties & counsel
- appellant
M/s Mars Pharmaceuticals & Ors.
- respondent
Vijaya Bank & Anr.
Coram
R. D. Khare
Case details
As recorded by the court registry
All orders in this case
5 orders share this CNR
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