The Tribunal addressed an urgent application to reduce the statutory deposit for entertaining an appeal under the SARFAESI Act. Ordering a 25% deposit instead of the standard amount due to the interlocutory nature of the impugned order.
Petitioner directed to deposit Rs. 40,85,086/- within two weeks to secure the appeal.
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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 353/2023 in
A.IR:1265/2023
R Senthilkumar V/S Bank Of India
25/09/2023
This Application is filed to take up IA 352/2023 (Waiver) on an urgent basis.
Heard both sides.
This IA is allowed.
IA 353/2023 (urgent) is allowed. Hence, this Application is taken up for hearing. This Application is filed seeking waiver of statutory deposit required under Section 18 (1) of SARFAESI Act, 2002, for entertaining the Appeal.
Advocate for Petitioner/Appellant submitted that Petitioner/Appellant is LR of deceased Guarantor, and there are three properties mortgaged for the loan, and out of which, only one is belonging to Guarantor. He submitted, the amount indicated in Sale Notice dated 03.07.2023 is Rs.1,63,40,342.40p. He submitted, this Appeal is against an Interlocutory Order, considering these aspects, statutory deposit may be reduced, for entertaining the Appeal.
On the other hand, Advocate for 1st Respondent Bank opposed and submitted that, no grounds are made out for reduction.
I have perused material papers including impugned Order dated 09.08.2023.
Without going into merits and demerits of the case at this stage, as the Appeal is against an Interlocutory Order, I am of the view that directing Petitioner/Appellant to deposit 25% of the amount indicated in Sale Notice, would meet the requirements of Section 18(1) of SARFAESI Act, 2002, for entertaining the Appeal.
Admittedly, amount claimed under Sale Notice dated 03.07.2023, is Rs.1,63,40,342.40p (rounded off to Rs. 1,63,40,342/-), and 25% of it, will come to Rs.40,85,085,50p.
Therefore, Petitioner/Appellant shall deposit Rs.40,85,085,50p, (rounded off to Rs.40,85,086/-), within two weeks from today i.e., on or before 09.10.2023.
It is made clear that failure to deposit of above amount, the Appeal shall stand rejected. On making such deposit by Petitioner/Appellant, Registrar is to invest the same in a Nationalized Bank, from time to time till further orders are passed.
Post the case on 10.10.2023, for compliance of payment.
Sd/-
Chairperson
1 issue framed by the court
Whether the statutory deposit required to entertain an appeal under the SARFAESI Act should be reduced given the appeal is against an interlocutory order.
1 provisions across 1 enactments
R Senthilkumar
Bank Of India
Chairperson
As recorded by the court registry
6 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
