The Debt Recovery Appellate Tribunal, Chennai, fixed a reduced statutory deposit of 25% of the balance dues under Section 18 of the SARFAESI Act for entertaining an appeal against an interim order, directing payment within two weeks.
Appellants directed to deposit Rs.15,98,716/- within two weeks; failure leads to rejection of appeal.
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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 487/2023 in IA 321/2023
in
AIR 788/2023
M/S Akshaya Tex AndOrs Vs A.O., Canara Bank
21/11/2023
This application is filed to advance the hearing of IA 321/2023 (Waiver) from 11.12.2023 to 17.11.2023, which is posted to this date for counter of respondent bank. Counter of respondent bank in waiver application is filed today.
Heard both sides.
For the reasons stated in the affidavit filed in support of the petition, this application is allowed and IA 321/2023 (Waiver) is advanced to this date for hearing.
IA 321/2023 (Waiver):
As per orders in IA 487/2023 (adv. Hearing), this IA is taken up today for hearing.
This application is filed seeking waiver of statutory deposit required under Section 18 of SARFAESI Act, for entertaining the Appeal. Counter of respondent bank is filed today.
This Appeal is preferred against an order in IA I780/2022 in SA 449/2022 dated 18.5.2023 passed by DRT, Coimbatore.
Advocate for petitioners/appellants submitted that amount claimed under Section 13(2) notice is Rs.93,94,864/- as on 26.8.2020 and petitioners/appellants have paid a sum of Rs.30.00 lakhs with the respondent bank as per orders passed by Tribunal below dated 18.5.2023 and that petitioners/appellants are ready to deposit 25% of balance amount and filed a Memo to that effect. It is further submitted that as appeal is against an interim order, statutory deposit may be reduced to 25%.
On the other hand, advocate for respondent bank opposed and contended that a sum of Rs.1.08 crores was outstanding as on 18.5.2023 and the present dues i.e., as on 13.11.2023 is Rs.1,18,71,066.07p. It is further submitted that no grounds are made out for reducing the statutory deposit and petitioners/appellants may be directed to deposit 50% of present dues.
I have perused the material papers. Considering the contentions and rival contentions of both parties and as Appeal is preferred against an interim order, I am of the view directing the petitioners/appellants to deposit 25% of amount demanded through 13(2) Notice would meet the requirement under Section 18 of the SARFAESI Act.
As already referred to above, 13(2) notice amount is Rs.93,94,864/- as on 26.8.2020 and petitioners/appellants have deposited a sum of Rs.30.00 lakhs on 18.5.2023 and the same has to be deducted and on doing so, it comes to Rs.63,94,864/-.
Therefore, petitioners/appellants shall deposit 25% of Rs.63,94,864/- which comes to Rs.15,98,716/- within two weeks from today i.e., on or before 5.12.2023, failing which, appeal stands rejected.
On making such deposit, Registrar shall invest the same in a Nationalized Bank for a reasonable period and renew it periodically, till further orders are passed.
Post the matter on 6.12.2023 for compliance of deposit.
Sd/Chairperson
2 issues framed by the court
Whether the statutory deposit under Section 18 of the SARFAESI Act for entertaining an appeal against an interim order may be reduced to 25% of the balance amount.
What is the correct base and percentage for computing the deposit required from the appellants.
2 provisions across 1 enactments
M/S Akshaya Tex AndOrs
Canara Bank
Chairperson
As recorded by the court registry
14 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
