This application sought refund of the deposit made under Section 18(1) of SARFAESI Act after the disposal of the main appeal. The Tribunal observed that the deposit is not a secured asset and the bank had not met specified conditions to withhold it, allowing the refund.
Registry to return the amount deposited along with accrued interest, if any.
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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 223/2023
in RA (SA) 31/2022
Jaffarsab Vs Canara Bank And Anr
12/07/2023
This Application is filed seeking refund of deposit made under Section 18(1) of SARFAESI Act, 2002. Petitioner/Appellant deposited Rs.16,55,865/- through Demand Draft dated 03.08.2022, for entertaining the Appeal. Now, present Application is filed seeking refund of the same.
Heard both sides.
Advocate for Petitioner/Appellant submitted, as the Appeal is disposed of, Petitioner/Appellant is entitled for refund of amount deposited under Section 18 (1) of SARFAESI Act, 2002.
Advocate for 1st Respondent Bank opposed the Application and filed Counter stating that Bank filed OA 1495/2016 for recovery of amount due from Petitioner/Appellant to Bank, and taking steps to attach the amount lying in this Tribunal, towards the credit of above Appeal RA (SA) 31/2022, on that ground, sought for dismissal of Application.
Hon’ble Supreme Court, in AXIS BANK Vs.SBS ORGANICS PRIVATE LIMITED AND ANOTHER judgement, made it very clear that deposit made under Section 18(1) of SARFAESI Act, 2002, is not a secured asset to Bank, and Tribunal cannot withhold that amount, and clarified that only in specified conditions, the same can be withheld. In this case, none of those conditions attract to withhold the amount.
Contentions of Bank that they are taking steps to attach the amount, is not a ground to withhold the amount. Further, when the amount is deposited in August, 2022, and OA is filed in the year 2016, if Bank is really interested, nothing prevented Bank to get appropriate Order of attachment, before disposal of main Appeal RA (SA) 31/2022, which is disposed of on 07.03.2023. For these reasons, the objection raised by Bank is not tenable and Petitioner/Appellant is entitled for refund of amount.
Application is allowed accordingly. Registry to return the amount, with accrued interest, if any.
Sd/Chairperson
1 issue framed by the court
Whether an appellant is entitled to refund of deposit made under Section 18(1) of SARFAESI Act when the appeal is disposed of, notwithstanding the respondent bank's claim to attach the deposited amoun
Colour shows how this judgement treated each authority
AXIS BANK Vs. SBS ORGANICS PRIVATE LIMITED AND ANOTHERFollowed¶10
AXIS BANK Vs. SBS ORGANICS PRIVATE LIMITED AND ANOTHER
1 provisions across 1 enactments
Jaffarsab
Canara Bank
Chairperson
As recorded by the court registry
25 orders share this CNR
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