In an application to reduce the statutory deposit for entertaining an appeal under the SARFAESI Act, the Court held that the applicable deposit is 50% of the claim amount, amounting to Rs. 11,38,536/-, and directed payment within two weeks.
Directing appellants to deposit Rs. 11,38,536/- within two weeks; appeal to stand rejected if not compliant.
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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 232/2023 in
A.IR:537/2023
Asha &Ors V/S Punjab National Bank &Anr
09/11/2023
This application is filed seeking waiver of statutory deposit required under Section 18 of SARFAESI Act, for entertaining the Appeal.
Advocate for petitioners/appellants submitted that petitioners are legal heirs of guarantor and that first petitioner is the wife of deceased guarantor and mother of petitioners 2 and 3 and she is the sole bread earner and that she has no other income and considering the same, statutory deposit may be reduced.
Advocate for R1 bank opposed the request of advocate for petitioners/appellants and submitted that no payments were made till today and petitioners/appellants have not made out any ground for reduction of statutory deposit from 50% to 25%.
I have perused the material papers and impugned order dated 17.4.2023 passed in SA 251/2021 on the file of DRT-II, Bengaluru. This appeal is preferred against final order dated 17.4.2023 and as per material papers, claim of the secured creditor is Rs.22,77,072/- as on 23.7.2021. Admittedly, no money is paid subsequent to 23.7.2021.
Considering the same and the fact that impugned order is against final order, I am of the view that petitioners/appellants shall deposit 50% of above said claim amount to meet the requirement under Section 18 of the SARFAESI Act, which comes to Rs.11.38,536/-.
Therefore, petitioners/ appellants shall deposit Rs.11,38,536/- within two weeks from today i.e., on or before 23.11.2023, failing which, appeal stands rejected.
On making such deposit, Registrar shall invest the same in a Nationalized Bank for a reasonable period and renew it periodically, till further orders are passed.
Post the matter on 24.11.2023 for compliance of deposit.
Sd/-
Chairperson
1 issue framed by the court
Whether the statutory deposit required under Section 18 of SARFAESI Act for entertaining the appeal may be reduced on the ground of financial inability.
1 provisions across 1 enactments
Asha & Ors
Punjab National Bank & Anr
Chairperson
As recorded by the court registry
9 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
