The Tribunal disposed of an application for waiver/reduction of statutory deposit. It directed petitioners to deposit Rs. 6,18,774/- (50% of the balance claim after deducting prior payments) to maintain the appeal under the SARFAESI Act.
Direct deposit of Rs. 6,18,774/- within two weeks or the appeal shall stand rejected.
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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 215/2023 in A.IR:381/2023
S.Malathi&Anr V/S Indian Overseas Bank &Anr
01/09/2023
This Application is filed seeking waiver of statutory deposit required under Section 18 (1) of SARFAESI Act, 2002, for entertaining the Appeal.
This Appeal is filed against Order dated 30.03.2023 in SA 86/2020.
Heard both sides.
Advocate for Petitioners/Appellants submitted that the amount demanded through Demand Notice dated 17.02.2016, issued under Section 13(2) of SARFAESI Act, 2002, is Rs.20,87,548.22p (which is rounded off to Rs.20,87,548/-). Advocate for Petitioners/Appellants would submit that as per the directions of Tribunal below, an amount of Rs.3.5 Lakhs is paid on 18.03.2020 and Rs. 5 Lakhs is paid to Bank on 09.05.2023. He submitted, considering the same, statutory deposit may be reduced, for entertaining the Appeal.
Advocate for first Respondent Bank admitted the deposit of Rs.3.5 Lakhs, but, in respect of deposit of Rs.5 Lakhs is concerned, he submitted, it is kept in No- Lien Account.
I have perused material papers.
Admittedly, amount claimed under Section 13(2) Notice, is Rs.20,87,548/-. If the amount of Rs.8.50 Lakhs (i.e. Rs.3.50 Lakhs plus Rs.5 Lakhs) deposited by Petitioners/Appellants after issuance of 13(2) Notice, is deducted from out of said Notice amount, the amount would come down to Rs.12,37,548/-, I am of the view that directing Petitioners/Appellants to deposit 50% of Rs.12,37,548/-, would meet requirement under Section 18 (1) of SARFAESI Act, 2002, for entertaining the Appeal.
For the above reasons, Petitioners/Appellants shall deposit 50% of Rs.12,37,548/, which comes to Rs.6,18,774/-, within a period of two weeks from today i.e., on or before 15.09.2023.
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 18.09.2023, for compliance of payment.
Sd/Chair Person
2 issues framed by the court
Whether statutory deposit for entertaining the appeal can be reduced by deducting amounts already paid by petitioners after the issuance of the Section 13(2) Notice.
Whether a deposit of 50% of the balance claim amount of Rs. 12,37,548/ satisfies the requirement of Section 18(1) of the SARFAESI Act.
2 provisions across 1 enactments
S. Malathi & Anr
Indian Overseas Bank & Anr
Chair Person
As recorded by the court registry
13 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
