Disposed

M/ S Vikash Agro Industries and Ors. v. Canara Bank and Anr.

DRAT14 Mar 2023REGULAR APPEAL/325/2014

Case brief

AI extract

What is this about?

The court directed the appellants to deposit 25% of the amount due under the third proviso of Section 18 of the SARFAESI Act, rejecting proceeds from auction sale. Failure to deposit within a month would dismiss the appeal. The case was listed for hearing on waiver of the remaining 25%.

What did the court decide?

Directed appellants to deposit 25% of the amount due within one month; otherwise, the appeal stands dismissed without further reference.

M/ S Vikash Agro Industries and Ors. versus Canara Bank and… — Banking and Recovery | DRAT (2023)

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Regular Appeal No. 325/2014 Date: 14.03.2023

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M/s Vikash Agro Industries and Ors. Vs. Canara Bank and Anr.

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Present: Shri V. K. Shukla, counsel for the appellants, Shri S. K. Srivastava, counsel for the respondent-Bank,

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The office report dated 13.03.2023 shows that no steps have been taken by the learned counsel for the appellant for service of notice upon the respondent no. 4 and no predeposit has been made.

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Learned counsel for the respondent-bank seeks further time to file reply. Let the same be filed by the next date.

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In the present case, the appellants have not deposited any amount towards minimum deposit of 25% of the amount due, which is mandatory in nature in view of the third proviso of section 18 of the SARFAESI Act, as the amount realized by the Bank from auction sale of the property of the appellant cannot be taken into consideration towards pre-deposit in view of the judgment passed by the Hon’ble Apex Court in Civil Appeal No. 8969 of 2022- M/s Sidha Neelkanth Paper Industries Private Limited & Another Vs. Prudent ARC Limited & Others decided on 05.01.2023 .

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In the waiver application, the learned counsel for the appellants has stated that the property has been auctioned by the respondent-bank, but the same cannot be considered towards pre-deposit in view of the judgment as referred to above. Therefore, the appellants are directed to deposit 25% of the amount due, which is mandatory in nature, within a month from today for entertaining the appeal. If the appellants do not deposit the said amount within the stipulated period, the appeal shall stand dismissed as not

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entertainable for want of mandatory pre-deposit without further reference to this court. If the said amount is deposited by the appellant within the stipulated period, then list this case on 15.05.2023 for hearing on waiver of the rest 25% of the amount due and in interregnum, the appellant may take steps for service of notice upon the respondent no. 4 as per earlier order dated 29.11.2022. Affidavit of service along with tracking report be filed by the next date.

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Justice R. D. Khare Chairperson

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Anupam

M/ S Vikash Agro Industries and Ors. v. Canara Bank and Anr.

Case brief

What is this about?

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M/ S Vikash Agro Industries and Ors. v. Canara Bank and Anr.

Case brief

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