Partly allowed

Ms Noor Tobacco Enterprises v. Canara Bank

DRAT22 Dec 2023REGULAR APPEAL/154/2023

Case brief

AI extract

What is this about?

The Debts Recovery Appellate Tribunal disposed of an interim application for waiver of pre-deposit under the SARFAESI Act, 2002. The Court held that the deposited amount of Rs.4,54,45,099/- complied with the statutory 50% requirement and allowed the interim application. The appeal was subsequently admitted and listed for full hearing.

What did the court decide?

Interim application for waiver of pre-deposit under the proviso to Section 18(1) of SARFAESI Act, 2002 was allowed. Appeal admitted for hearing.

Ms Noor Tobacco Enterprises versus Canara Bank — Insolvency and Bankruptcy | DRAT (2023)

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IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA (CAMP-HYDERABAD)

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(Diary.No.778 of 2023)

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(Arising out of S.A.No.299 of 2019 in DRT-II, Hyderabad)

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THE HON’BLE MR. JUSTICE ANIL KUMAR SRIVASTAVA CHAIRPERSON

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22.12.2023

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M/s Noor Tobacco Enterprises.… Appellant

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-Vs-

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Canara Bank ...Respondent

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Sri D. Raghavulu Learned Counsel for Appellant

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Sri S. Sainathan Learned Counsel for Respondent No.1

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Sri G. Prabhakar Sharma Learned Counsel for Respondents No.2 to 4

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THE APPELLATE TRIBUNAL:

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Vakalatnama filed on behalf of RespondentNo.1 and Respondents No.2 to 4 is taken on record. Heard Ld. Counsel for the Appellant and as well as Respondents and perused the record.

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I.A. No.427/2023 is an application for waiver for making pre-deposit under Proviso to Section 18(1) of SARFAESI Act, 2002. Ld. Counsel for the Appellant submits that ademand for Rs.5,57,06,542.37ps. was made by the secured creditor on 19.03.2018. Thereafter, an amount of Rs.4,54,45,099/was deposited by the Appellant with the Respondent Bank on different dates. It is further submitted that in the meantime, secured assets were auctioned and sold but the Appellant cannot take advantage of the sale proceeds in view of the law laid down in the case of “ M/s SidhaNeelkanth Paper Industries Private Limited & another Vs. Prudent ARC Limited & others” [2023 Live Law (SC) 11].

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Ld. Counsel for the Respondent Bank opposed the prayer.

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As far as compliance of Proviso to Section 18(1) of SARFAESI Act, 2002 is concerned, the Appeal can only be maintained on making a pre-deposit of 50% of the demanded dues. It is not disputed in the present case that after the demand notice dt.19.03.2018, the Appellant has deposited an amount of Rs.4,54,45,099/- which complies with the Proviso to Section 18(1) of SARFAESI Act, 2002. Accordingly, I am of the view that compliance of the Proviso to Section 18(1) of SARFAESI Act, 2002 has been made by the Appellant inI.A.No.427/23. Accordingly, I.A.No.427/23 is allowed.

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Let the appeal be admitted by providing a regular appeal number.

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Respondents may file their opposition to the Appeal within four weeks with a copy to the Appellant who may file their rejoinder if any, within two weeks thereafter.

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List the matter on 13.03.2024 for hearing of the Appeal.

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(Anil Kumar Srivastava, J) Chairperson Dated 22^nd December, 2023

Ms Noor Tobacco Enterprises v. Canara Bank

Case brief

What is this about?

What did the court decide?

Ms Noor Tobacco Enterprises v. Canara Bank

Case brief

What is this about?

What did the court decide?

What the court decided

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