The Appellate Tribunal rejected the appellant's application for waiver of the statutory deposit under Section 18(1) of the SARFAESI Act. The Court directed the appellant to deposit 50% of the outstanding dues to entertain the appeal.
Appellant directed to deposit Rs. 41,38,35,641/- within two weeks; appeal to be rejected upon failure.
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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
A.IR: 956/2023
Vasu Coco Resorts Pvt Ltd &Anr V/S State Bank Of India &Ors
03/10/2023
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 the Appeal is against final Order dated 07.07.2023 in SA 530/2022 on the file of DRTII, Ernakulamr. He submitted, as per the Counter Affidavit of Bank, outstanding is Rs.82,76,71,281.45p, as on 30.11.2021, after deducting the payments made earlier, but, Petitioners/Appellants are disputing that the payments are not properly reflected. He submitted, considering the reasons stated in the Affidavit, statutory deposit may be reduced.
On the other hand, Advocate for Bank opposed and submitted that Petitioners/Appellants did not pay any amount subsequent to Notice, therefore, the amount of Rs.82,76,71,281.45p has to be taken into consideration. He further submitted, as no valid reasons are shown for reducing statutory deposit, therefore, Petitioners/Appellants have to deposit 50% of said amount, for entertaining the Appeal.
I have perused material papers and impugned Order dated 07.07.2023.
Considering the submissions of Advocates for both sides, I am of the view that Petitioners/Appellants have to deposit 50% of Rs.82,76,71,281.45p (rounded off to Rs.82,76,71,281/-), as demanded by Bank in the Counter Affidavit, to 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.82,76,71,281/-, which comes to Rs.41,38,35,640.50p, (rounded off to Rs.41,38,35,641/-) within a period of two weeks from today i.e., on or before 17.10.2023.
It is made clear that failure to deposit of above amount, on or before 17.10.2023, the Appeal shall stand rejected. On making such deposit, Registrar shall invest the same in a Nationalized Bank for a reasonable period, till further orders are passed.
Post the case on 18.10.2023, for compliance of payment.
Sd/Chairperson
1 issue framed by the court
Whether the appellant is entitled to a waiver of the statutory deposit required under Section 18(1) of the SARFAESI Act, 2002 for entertaining the appeal.
1 provisions across 1 enactments
Vasu Coco Resorts Pvt Ltd
State Bank Of India
Chairperson
As recorded by the court registry
13 orders share this CNR
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