The Debt Recovery Appellate Tribunal dismissed a waiver application seeking exemption from the statutory deposit under the SARFAESI Act. Finding no valid deposit, the Tribunal held the appeal cannot be entertained and dismissed it.
Waiver application dismissed; Appeal rejected for non-maintenance of statutory deposit requirement.
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IA 135/2023 in A.IR:219/2023
IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
Dated the 14th of December, 2023
PRESENT: Hon’ble Mr. Justice S. Ravi Kumar
CHAIRPERSON
IA 135/2023 (Waiver)
in
A.IR (SA) : 219/2023
[SA 32/2020 on the file of DRT-III, Chennai)
Between
Mrs. K. Letchoumy Kanakarajan, Proprietrix, M/s. Meeraa Enterprises, 193/A, Bharathiyar Road, Karaikal – 609 602. Pan No. AFBPL 8579F
……Petitioner/Appellant
And
….. Respondents
For Petitioner : M/s. T. Sai Krishnan For R1 Bank : Mr. S. Pandurangan For R2 : M/s. R. Jayaprakash
1
IA 135/2023 in A.IR:219/2023
O R D E R
As per Order in IA 509/2023, Waiver Application is taken up for hearing.
This Application is filed seeking waiver of statutory
deposit required under Section 18 (1) of the SARFAESI Act, 2002, for entertaining the Appeal.
Heard both sides.
Advocate for Petitioner/Appellant submitted that the Petitioner/Appellant deposited entire amount in the Bank, therefore, there is no need to make any deposit, for entertaining the Appeal.
Advocate for first Respondent Bank represented that the money deposited by Petitioner/Appellant is not accepted by Bank and Demand Drafts (DDs) are lying with Bank, in spite of making a request to Petitioner/Appellant to take them back.
As per Section 18(1) of SARFAESI Act, 2002, for
entertaining the Appeal, it is mandatory for Appellant to
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IA 135/2023 in A.IR:219/2023
deposit 50% of the amount claimed by Secured Creditor or debt determined by DRT, in this Tribunal. This Tribunal is vested with power to reduce it upto 25% by recording reasons. Unless the amount is deposited here before Appellate Tribunal, the Appeal cannot be entertained.
When it was put to Advocate for Petitioner/Appellant, to get back money from Bank and deposit the same before this Tribunal, he represented that money is already deposited in Bank and necessary orders may be passed.
As 50% of amount demanded by Secured Creditor is not deposited, the Appeal cannot be entertained. Hence, IA 135/2023 (Waiver) is dismissed. Consequently, Appeal A.IR (SA) : 219/2023 is rejected. All pending IAs, if any, stand closed.
[Dictated to Athistamani, PS transcribed by her, corrected, signed and pronounced by me in open court, this 14th of December, 2023]
[ Justice S. Ravi Kumar] CHAIRPERSON
3
2 issues framed by the court
Whether the appeal regarding recovery proceedings is maintainable without the mandatory deposit under Section 18(1) of the SARFAESI Act.
Whether the bank's refusal to return the deposited amount excuses the statutory requirement of deposit for entertaining the appeal.
1 provisions across 1 enactments
Mrs. K. Letchoumy Kanakarajan
The Authorised Officer, State Bank of India, Karaikal Branch
M. Abdul Ali
S. Ravi Kumar
As recorded by the court registry
13 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
