This is an application for waiver of deposit filed under Sec. 18(1) of the Securitisation & Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002 (‘SARFAESI Act’ for short) filed in the appeal which impugns the order dated 18.04.2023 of the Debts Recovery Tribunal No.-II, Mumbai(D.R.T.) in I.A. No. 769/2023 in Securitisation Application (S.A.) No. 154 of 2023 wherein the Ld. P.O. declined to grant any order favouring the Appellant to stall the Sarfaesi measures initiated by the Respondent. 3. According to the Ld. Counsel appearing for the Respondent, there is an outstanding debt of ₹63 lakhs due from the Appellant. The amount demanded in the demand notice under Sec. 13(2) of the SARFAESI Act was ₹43,68,290.48 as of 20.05.2022.

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The Appellant has challenged the Sarfaesi measures mainly on the ground that the notice under Sec. 13(2) was not served upon him as he is not staying on the subject premises but in Satara. It is admitted that the Appellant’s son and his family are staying in the subject premises and his son who is the third Respondent, is also a co-borrower. Hence, prima facie, the contention that Sec. 13(2) notice was not served upon the Appellant cannot be taken for granted. The other contention raised by the Appellant is that the calculation of the amount is not correct and that the dues as claimed by the Respondent are incorrect because certain amounts to which the Respondent is not entitled, have been included in the statement. The correctness of the amount is something to be determined while considering the S.A. for final disposal. Hence, that objection raised by the Appellant is not of much consequence. The Appellant has stated that he is a retired person, seventy one years old, and has no source of income and is, therefore, in financial strain. There is no evidence in support of this contention raised in the application. However, taking into consideration the entire facts and circumstances in this case and appearing the rival arguments, I come to the conclusion that the Appellant shall deposit a sum of ₹25 Lakhs as pre-deposit. From out of the said amount, the first instalment of ₹5 lakhs shall be deposited on or before 19.05.2023 by 12.00 noon. The second instalment of ₹5 lakhs shall be deposited on or before 23.05.2023 and the third instalment of ₹15 lakhs shall be deposited on or before 07.06.2023. In default of the payment of any instalments on time, the appeal shall stand dismissed without

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any further reference of the Tribunal.

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In the meantime, the Appellant is also at liberty to make payment directly to the Respondent and get the debt regularised, if he deems it fit, to do so.

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On deposit of the first instalment, the Appellant shall be entitled to stay of further Sarfaesi measures, if any, initiated by the Respondent.

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The amounts 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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With these observations, the M.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 22.05.2023 for reporting compliance concerning the first instalment.

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Sd/Chairperson

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mks- 5

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Bandu Pandurang Salunke v. Tata Capital Financial Services Limited

What the court decided

Bandu Pandurang Salunke v. Tata Capital Financial Services Limited

What the court decided

A compact analysis

Statutes considered

Parties & counsel

Coram

Case details

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