The Tribunal fixed the requisite statutory deposit for the appeal at 50% of the outstanding amount as of the relevant date, rejecting the petitioner's request for a 25% reduction.
Petitioners directed to deposit Rs. 10,21,891/- within two weeks; failure to do so will lead to rejection of the appeal.
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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 400/2022 in A.IR:233/2022
M/S Vc Ocean Engineering And Consultancy Pvt Ltd & Ors V/S City Union Bank Ltd
04/08/2023
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.
Advocate for Petitioners/Appellants submitted that amount claimed in Demand Notice dated 26.07.2019, issued under Section 13(2) of SARFAESI Act, 2002, is Rs.39,54,941/-. She further submitted that subsequent to Demand Notice, Petitioners/Appellants made several payments and as per statement of Bank, outstanding as on 02.11.2021 is Rs.20,43,782/-, considering the same, she submitted, statutory deposit may be reduced to 25%.
Advocate for Respondent Bank admitted the payments made by Petitioners/Appellants, after 13(2) Notice, and submitted that, outstanding as on 02.11.2021 is Rs.20,43,782/-, but no grounds are made out for reduction of statutory deposit.
I have perused material papers.
Considering the submissions of both sides and Affidavit filed in support of Waiver Petition, I am of the view, directing Petitioners/Appellants to deposit 50% of outstanding as on 02.11.2021 i.e. Rs.20,43,782/-, would meet the requirement of Section 18(1) of SARFAESI Act, 2002, for entertaining the Appeal.
For the above reasons, Petitioners/Appellants shall deposit 50% of Rs.20,43,782/-, which comes to Rs.10,21,891/-, within a period of two weeks from today i.e., on or before 18.08.2023.
It is made clear that failure to deposit of above amount, on or before 18.08.2023, 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 21.08.2023, for compliance of payment.
Sd/Chairperson
2 issues framed by the court
Whether waiver of statutory deposit under Section 18(1) of the SARFAESI Act is warranted based on reduced outstanding amount after payments.
What percentage of the outstanding amount is required to be deposited as the statutory deposit for entertaining the appeal.
1 provisions across 1 enactments
M/S Vc Ocean Engineering And Consultancy Pvt Ltd & Ors
City Union Bank Ltd
Chairperson
As recorded by the court registry
21 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
