The Tribunal calculated the statutory deposit for entertaining an appeal under the SARFAESI Act. After admitting repayments made post-notice, it ordered a deposit of 50% of the remaining claimed amount within two weeks.
Deposit of Rs.2,88,236/- (50% of Rs.5,76,472/-) payable within two weeks.
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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 300/2022 In A.IR:181/2022
Padam Chand Kothari & Ors V/S Indian Overseas Bank
03/05/2023
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.
It is not in dispute that two loans are taken from Respondent Bank; one is Housing Loan and other is Education Loan. Advocate for Petitioners/Appellants submitted that Housing Loan is already discharged, and same is admitted by Bank in their Counter filed to Waiver Application. He submitted as per 13(2) Notice, demand of Bank towards Education Loan, is Rs.21,76,472/-, as on 28.02.2019. It is further submitted subsequent to issuance of Notice, Petitioners/Appellants paid Rs.16 Lakhs towards Education Loan account to Bank, and same is also admitted in the Counter. Considering these facts, statutory deposit may be reduced to 25%.
Advocate for Respondent Bank opposed and submitted that, as on today, outstanding towards Education Loan, is Rs.17.11 Lakhs, and Petitioners/Appellants are practicing Doctors, and considering the same, Petitioners/Appellants may be directed to deposit 50% of Rs.17.11 Lakhs, for entertaining the Appeal.
I have perused material papers including the Affidavit filed in support of Application and Counter of Respondent Bank.
Without going into merits and demerits of the case, for the purpose of statutory deposit, I am of the view that amount demanded through 13(2) Notice is to be taken into consideration. As Petitioners/Appellants paid Rs.16 Lakhs subsequent to 13(2) Notice, the same has to be deducted from the amount claimed in Notice, and
if it is done, it comes to Rs.5,76,472/-, and Petitioners/Appellants shall deposit 50% of Rs.5,76,472/-, for entertaining the Appeal.
For the above reasons, Petitioners/Appellants shall deposit 50% of Rs.5,76,472/-, which comes to Rs.2,88,236/-, within a period of two weeks from today i.e., on or before 17.05.2023.
It is made clear that failure to deposit of above amount, the Appeal shall stand rejected. On making such deposit by Petitioners/Appellants, Registrar is to invest the same in a Nationalized Bank, from time to time, till further orders are passed.
Post the case on 18.05.2023, for compliance of payment.
Sd/Chair Person
2 issues framed by the court
Whether the statutory deposit for entertaining an appeal under Section 18(1) of the SARFAESI Act, 2002 should be calculated based on the amount claimed in the 13(2) Notice or the outstanding balance a
What percentage of the calculated deposit is required in the given circumstances.
1 provisions across 1 enactments
Padam Chand Kothari & Ors
Indian Overseas Bank
Chair Person
As recorded by the court registry
25 orders share this CNR
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