Disposed

Bhavana Rohit Shah and Anr. v. Icici Bank Limited

DRAT17 Feb 2023MISC APPEAL/131/2023

Case brief

AI extract

What is this about?

An appeal before DRAT Mumbai regarding a non-meritorious application for interim relief against dispossession under the SARFAESI Act. The court directed the appellants to deposit 30% as a pre-deposit in three instalments to continue the appeal before scheduling possession.

What did the court decide?

Directed appellant to deposit ₹30 lacs in three equal instalments; possession suspended pending deposit.

Bhavana Rohit Shah and Anr. versus Icici Bank Limited — Banking and Recovery | DRAT (2023)

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

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I.A. No. 99/2023 (WoD) In Appeal on Diary No. 215/2023

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Between

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Bhavna Rohit Shah & Ors. … Appellant/s V/s. The Authorised Officer, …Respondent/s ICICI Bank Ltd.

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Ms Sanjana Ghogare, i/b Mr Dhrumit D Chauhan, Advocate for Appellants.

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Ms Vrusali Agarwal, i/b M/s. Raval- Shah & Co., Advocate for Respondent.

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-: Order dated: 17/02/2023:-

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The Appellants are in the appeal impugning the order of the Debts Recovery Tribunal-I, Ahmedabad in S.A. No. 06/2023 wherein the Ld. Presiding Officer declined to grant any interim relief to protect the Appellants from being dispossessed from the secured assets which is a residential flat belonging to the Appellants. The Appellants have challenged the Sarfaesi measures on various grounds starting from the inadequacy of the notice under section 13(2), the Rules not being followed and the ninepointer affidavit not being filed before the District Magistrate together with an application under section 14 of the SARFAESI Act. The Ld. Presiding Officer did not find any prima facie case in favour of the Appellants and declined to grant any relief and

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hence, the Appellants are in appeal.

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The demand notice issued on 23.06.2021 under section 13(2) of the SARFAESI Act demands payment of the sum of ₹85 lacs together with interest and in the reply filed by the Respondent Bank it is stated that as of today the amount due from the Appellants is approximately ₹95 lacs. The Appellants would contend that they have a good case on the merits and also that they are going under financial strain following the post-covid situation. Income Tax Return for the Assessment year 2020-2021 has been produced which shows that the gross income of the first Appellant is ₹4,98,720/-. The second Appellant who is the husband of the first Appellant also does not have substantial income and the returns filed by him for the assessment year 202223 indicate that he has a gross income of ₹5,25,000/-. It is, therefore, submitted that the Appellants are not in a financial position to comply with the mandatory pre-deposit under the second proviso to section 18(1) of the SARFAESI Act by paying 50% of the amount due.

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Considering the fact that the Appellants have come out with objections regarding the Sarfaesi measures which will have to be considered in detail and the fact that the Appellants are not in a good financial position, I direct the Appellants to deposit a sum of ₹30 lacs as pre-deposit in three equal instalments. The first instalment is being paid today by way of a Demand Draft of ₹10 lacs. The second instalment of ₹10 lacs shall be paid within a period of three weeks, on or before 10.03.2023 and the third

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instalment of ₹10 lacs shall be paid within a period of two weeks therefrom, on or before 24.03.2023. Failure to pay the subsequent instalments shall entail in dismissal of the appeal 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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Since the first instalment has been paid, the possession scheduled to be taken on 19.02.2023 shall be stalled till further order.

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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 13.03.2023 for reporting compliance concerning the second instalment.

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Sd/Chairperson

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mks-2

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Bhavana Rohit Shah and Anr. v. Icici Bank Limited

Case brief

What is this about?

What did the court decide?

Bhavana Rohit Shah and Anr. v. Icici Bank Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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