N Madhavan v. Indian Bank
Case brief
What is this about?
In an application to waive the statutory pre-deposit for an appeal under the SARFAESI Act, 2002, the Tribunal classified the challenge under Section 13(2) Notice. Applying Supreme Court precedent, the Tribunal fixed the deposit amount as 50% of the demanded sum and directed payment within two weeks, failing which the appeal would stand rejected.
What did the court decide?
Direction to deposit Rs.3,02,305/- (50% of demand notice amount) within two weeks; appeal rejection if not deposited.
What the court decided
IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 548/2022 in A.IR:276/2022
N.Madhavan V/S A.O.,Indian Bank &Ors
01/12/2023
- This Application is filed seeking waiver of statutory deposit required under Section 18 (1) of SARFAESI Act, 2002, for entertaining the Appeal.
- As per Affidavit of Petitioner/Appellant, Petitioner deposited an amount of Rs.1,51,000/- before Registrar of this Tribunal in an Appeal filed in respect of same secured asset, which is still pending, and impugned Order in respect of this Appeal is passed under Section 17 of SARFAESI Act, 2002, challenging the action of Respondent against the secured property. It is further stated that Petitioner/Appellant always ready to pay the debt due to Bank i.e. determined judicially by any forum, and that he is not served with any Demand Notice; for these reasons, pre deposit has to be waived.
Heard. Advocate for R3 submitted Auction Purchaser filed Counter. No one appeared for the Bank.
- Advocate for Petitioner/Appellant submitted that the Bank issued Letter dated 12.02.2010 stating that an amount of Rs.14,00,500/- is realized, and there is no outstanding, therefore, as per Section 18 (1) of SARFAESI Act, 2002, there is no need to deposit any amount. He further submitted, between the same party, this Tribunal, by Order dated 30.09.2019, ordered for deposit of 25%, as pre deposit, considering the same, pre deposit may be reduced.
Issues for consideration
2 issues framed by the court
Whether statutory pre-deposit required under Section 18(1) of SARFAESI Act, 2002 must be waived or determined based on Notice amount.
Whether 50% pre-deposit calculated under Section 13(2) Notice satisfies requirements of Section 18(1) of SARFAESI Act, 2002.
Parties & counsel
- appellant
N. Madhavan
- respondent
Assistant Officer, Indian Bank
Coram
Chairperson
Case details
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