Ms Shaon Mustard Oil Mill and Ors. v. Asrec India Ltd.
Case brief
What is this about?
The Tribunal rejected the Appellants' plea for a waiver of the pre-deposit required to file an appeal. Ruling that Section 21 of the RDBI Act is mandatory, the Court directed a 50% pre-deposit of the debt due, noting any prior settlement deposit of Rs. 15.00 lac would be adjusted.
What did the court decide?
Direction to Appellants to make a pre-deposit equivalent to 50% of the debt due within six weeks.
What the court decided
IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA
Appeal No. 02 of 2019
THE HON’BLE MR. JUSTICE ANIL KUMAR SRIVASTAVA CHAIRPERSON
05.06.2023 M/s. Shaon Mustard Oil Mill & 5 Others … Appellants -vsAsset Reconstruction Company India Limited … Respondent Mr. Khondker Samiul Haque with Mr. A.K. Upadhyay and Mr. D. Saha, Learned Counsel for the Appellants Mr. Debasish Chakrabarti with Ms. Sharmistha Pal, Learned Counsel for Respondent
THE APPELLATE TRIBUNAL :
This is an application filed by Appellants for waiver from making pre deposit.
O.A. 265 of 2012 was allowed ex parte by the Learned DRT-1, Kolkata on 11th May, 2016 wherein a certificate for Rs.5,66,19,109.45 with interest at the rate of 15.60% per annum with monthly rests from 01.7.2012 was granted.
Feeling aggrieved, Appellants preferred the appeal.
Learned Counsel for the Appellants submits that some time may be granted to the Appellants to make the pre deposit. It appears that in the application for waiver in paragraph 6 Appellants have taken a plea that at the time of hearing of the waiver application, necessary ingredients which are necessary for deciding the application for ad interim injunction should be considered; i.e. the judicial principles of prima facie case, balance of convenience, irreparable loss and injury. I am unable to accept the contention of the Learned Counsel for the Appellants. Provisions of Section 21 of the RDBI Act are mandatory in nature and are analogous to Section 18 of the SARFAESI Act 2002.
Issues for consideration
2 issues framed by the court
Whether Appellants are entitled to a waiver of the pre-deposit requirement to file an appeal under Section 21 of the RDBI Act.
Whether judicial principles of prima facie case, balance of convenience, and irreparable loss can be applied for waiving the pre-deposit.
Parties & counsel
- appellant
M/s. Shaon Mustard Oil Mill & 5 Others
- respondent
Asset Reconstruction Company India Limited
Coram
Anil Kumar Srivastava
Case details
As recorded by the court registry
All orders in this case
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