Ms. Suvidhi Jain and Ors. v. Axis Bank and Anr.

Appeal Dy. No. 447/2021 Date: 01.02.2023

Ms. Suvidhi Jain & Ors. Vs. Axis Bank & Anr.

Present: Shri Rakesh Chandra Pathak, Advocate holding brief of Shri Vipul Pandey, counsel for the appellants, Shri S. K. Gupta, counsel for the respondent-Bank,

The present appeal has been filed under section 18 of the SARFAESI Act against the order dated 29.10.2021 passed by the Tribunal below in R.A. No. 04/2021 and the order dated 17.03.2021 passed in S.A. No. 26 of 2020. The appellants are the daughters of late Rajnish Jain, who was the Director and Guarantor of the borrower-company.

The third proviso of section 18 of the said Act says that the Appellate Tribunal may, for the reasons to be recorded in writing, reduce the amount to 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 debt due. Hence, the minimum deposit of 25% of the amount due as claimed by the respondent-Bank is mandatory in nature for entertaining the appeal. In the present case, the appellants have not deposited any amount towards mandatory deposit of 25% of the amount due in view of the third proviso of said section. Hence, the appellants are directed to deposit 25% of the amount due in the form of demand draft favouring the Registrar, DRAT, Allahabad, which is mandatory in nature for entertaining the appeal prior to the next date fixed in the case. 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 as mentioned above, list this case on 29.03.2023 for hearing on waiver of rest 25% of the amount due.

Justice R. D. Khare Chairperson