N.K.Preman v. Punjab National Bank
Case brief
What is this about?
In IA 263/2023, the Debt Recovery Appellate Tribunal rejected the appellant's request to reduce the statutory deposit from 50% to 25% under the SARFAESI Act. The Court noted the appellant failed to provide material evidence supporting claims of financial hardship. The Court directed payment of 50% of the outstanding claim amount to entertain the appeal.
What did the court decide?
Appellant directed to deposit Rs.30,36,822/- (50% of Rs.60,73,644/-) within two weeks; failure to deposit will result in rejection of the appeal.
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.
IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 263/2023 in A.IR:740/2023
N.K.Preman V/S Punjab National Bank & Anr
31/07/2023
This Application is filed seeking waiver of statutory deposit required under Section 18 (1) of the SARFAESI Act, 2002, for entertaining the Appeal.
No representation for Respondent Bank.
Heard Advocate for Petitioner/Appellant.
Advocate for Petitioner/Appellant submitted that this Appeal is preferred against Final Order dated 04.05.2023 in SA 311/2019 of DRT-I, Ernakulam. He submitted that in Section 14 Application, claim of Bank is Rs.63,73,643.77p as on 26.08.2019. He submitted, subsequent to this date, Petitioner/Appellant paid a sum of Rs.3 Lakhs as per Orders of DRT, on 02.12.2019 and same is also referred to in Final Order dated 04.05.2023. He submitted Petitioner/Appellant could not pay remaining Rs.3 Lakhs, due to his financial condition and due to loss in business, and requested that, taking these aspects into consideration, statutory deposit may be reduced to 25%,.
I have perused material papers and impugned Order dated 04.05.2023.
Though it is contended that Petitioner/Appellant suffered business loss and he was not in sound financial condition, no material is placed before this Tribunal to support those allegations. As per Section 18(1) of SARFAESI Act, 2002, for entertaining the Appeal, 50% of amount claimed by Secured Creditor has to be deposited, and the same can be reduced to 25%, provided, convincing grounds are made out. As Petitioner/Appellant has not placed any material showing financial condition and loss in business, I am not inclined to reduce the statutory deposit.
Issues for consideration
3 issues framed by the court
Whether the 50% statutory deposit required under Section 18(1) of the SARFAESI Act can be reduced to 25% due to the appellant's alleged financial hardship.
Whether the appellant failed to provide material evidence to support claims of business loss and insolvency to warrant a reduction in the deposit.
How to calculate the remaining deposit liability after deducting an interim payment made by the appellant.
Parties & counsel
- appellant
N.K.Preman
- respondent
Punjab National Bank & Anr
Coram
Chairperson
Case details
As recorded by the court registry
- Court
- DRAT
- Decided on
- · July
- CNR
- 331090007402023
- Topic
- Banking and Recovery
All orders in this case
4 orders share this CNR
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