M/S Navda Health Care Ltd. v. Canara Bank and Anr.

Appeal Dy. No. 604/2022 Date: 19.04.2023

M/s Navda Health Care Ltd. Vs. Canara Bank & Anr.

Present: Shri N. K. Dwivedi, Advocate holding brief of Shri S. K. Pandey, counsel for the appellant, Shri V. K. Shukla, counsel for the respondent no. 3, Shri Ramesh Kumar, Advocate holding brief of Shri Maneesh Mehrotra, counsel for the respondent-bank,

The Court Master informs that no rejoinder has been filed pursuant to the earlier order of this court dated 30.01.2023. The order of the Hon’ble High Court dated 16.03.2023 is also placed on record, by which the writ petition has been disposed off with expectation that this Court shall pass the order on the next date with regard to the maintainability of the appeal in absence of pre-deposit.

In the present case, the appellant has not deposited any amount towards minimum deposit of 25% of the amount due, which is mandatory in nature in view of the third proviso of section 18 of the SARFAESI Act, as the amount realized by the Bank from auction sale of the property of the appellant cannot be taken into consideration towards pre-deposit in view of the judgment passed by the Hon’ble Apex Court in Civil Appeal No. 8969 of 2022- M/s Sidha Neelkanth Paper Industries Private Limited & Another Vs. Prudent ARC Limited & Others decided on 05.01.2023 .

In the waiver application, the learned counsel for the appellant has stated that the property has been auctioned by the respondent-bank, but the same cannot be considered towards pre-deposit in view of the judgment as referred to above. Therefore, the appellant is directed to deposit 25% of the amount due, which is mandatory in nature, within a month from today for entertaining the appeal. If the appellant

does not deposit the said amount within the stipulated period, 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 appellant within the stipulated period, then list this case on 14.07.2023 for hearing on waiver of the rest 25% of the amount due.