Mr Ombir Singh and Anr. v. Dewan Housing Finance Corporation Ltd.
Case brief
What is this about?
This appeal under Section 18 of the SARFAESI Act was stayed. The appellant failed to deposit 50% of the debt due. The mandatory pre-deposit was reduced to a minimum of 25% for entertaining the appeal. The case was scheduled to list for a hearing on waiver of the remaining 25% upon deposit of the full 25%.
What did the court decide?
The minimum mandatory pre-deposit for entertaining the appeal is fixed at 25% of the amount due.
What the court decided
A compact analysis
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
Appeal Dy. No. 526/2022 Date: 17.02.2023 Mr. Ombir Singh & Anr. Vs. Dewan Housing Finance Corporation Ltd.
Present: None for the appellants,
The present appeal has been filed under section 18 of the SARFAESI Act against the order dated 06.07.2022 passed by the DRT, Lucknow in Dy. No. 871 of 2021. In the present case, the appellant has not deposited any amount towards pre-deposit, whereas the second proviso of section 18 of the said Act, no appeal shall be entertained unless the borrower has deposited with the Appellate Tribunal 50% of the amount of debt due from him, as claimed by the secured creditor or determined by the Debt Recovery Tribunal, whichever is less. Further, the third proviso of the said section says that the Appellate Tribunal may, for the reasons to be recorded in writing, reduce the amount not less than 25% of the debt referred to in the second proviso. As such, this Tribunal has no power to reduce the amount below to 25% of the amount due. Therefore, the appellants are directed to deposit minimum 25% of the amount due, which is mandatory in nature, for entertaining the appeal. If the appellants do not deposit the said amount prior to the next date fixed, the appeal shall stand dismissed as not entertainable for want of mandatory pre-deposit without further reference to this court. If the said amount is deposited by the appellants within the stipulated period, list this case on 09.05.2023 for hearing on waiver of the rest 25% of the amount due.
Justice R. D. Khare Chairperson
Anupam
Issues for consideration
3 issues framed by the court
Whether an appeal under Section 18 of the SARFAESI Act can be entertained without 50% pre-deposit of the debt due.
Whether the Appellate Tribunal has power to reduce the mandatory pre-deposit below 25% of the debt.
Whether the pre-deposit requirement under Section 18 of the SARFAESI Act is mandatory in nature.
Parties & counsel
- appellant
Ombir Singh & Anr.
- respondent
Dewan Housing Finance Corporation Ltd.
Coram
R. D. Khare
Case details
As recorded by the court registry
- Court
- DRAT
- Decided on
- · February
- CNR
- 091090005262022
- Topic
- Banking and Recovery
All orders in this case
8 orders share this CNR
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