Application for waiver of statutory deposit in appeals under the SARFAESI Act was rejected. The Tribunal directed the appellant to deposit 50% of the secured claim amount as no payment was made after the notice.
Direction to deposit Rs.1,40,13,265/- as 50% of the claim amount within two weeks, otherwise appeals to be rejected.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 360/2023 in A.IR:1027/2023
Hanume Gowda V/S The Bangalore City Co Operative Bank Ltd
14/11/2023
These Applications are filed seeking waiver of statutory deposit required under Section 18 (1) of the SARFAESI Act, 2002, for entertaining the Appeals.
The Appeals A.IR (SA) :1013/2023 and A.IR (SA) :1027/2023 are filed by same party in respect of same account. SA 504/2022 is filed challenging the Sale Notice dated 17.11.2022 and SA 205/2021 is filed challenging Section 14 Order and aggrieved by the Orders of DRT-II, Bengaluru, these two Appeals are filed.
Heard both sides.
Advocate for Petitioner/Appellant submitted, demand of Secured Creditor is Rs.2,80,26,529/- as per Notice dated 02.11.2019 issued under Section 13(2) of SARFAESI Act, 2002. He further submitted, considering the reasons stated in the Affidavit filed in support of Petition, statutory deposit may be reduced, for entertaining the Appeals.
Advocate for Respondent Bank opposed and submitted, no grounds are made out for reduction of statutory deposit and Petitioner/Appellant has to deposit 50% of amount claimed by Secured Creditor.
I have perused material papers and impugned Orders dated 28.06.2023 in both the Appeals.
Admittedly, no payments are made after 13(2) Notice, therefore, the amount indicated in 13(2) Notice i.e. Rs.2,80,26,529/- has to be taken into consideration for the purpose of statutory deposit. Further, as Appeals are in respect of same account, one deposit would meet requirement under Section 18 (1) of SARFAESI Act, 2002. As Petitioner/Appellant failed to make out any valid grounds for reduction of statutory deposit, Petitioner/Appellant shall deposit 50% of above said amount, for entertaining the Appeals.
For the above reasons, Petitioner/Appellant shall deposit 50% of Rs.2,80,26,529/-, which comes to Rs.1,40,13,264.50p, (Rounded off to Rs.1,40,13,265/-), within a period of two weeks from today i.e., on or before 28.11.2023.
It is made clear that failure to deposit of above amount, the Appeals shall stand rejected. On making such deposit by Petitioner/Appellant, Registrar is to invest
the same in a Nationalized Bank, from time to time, till further orders are passed.
Post the case on 29.11.2023, for compliance of payment.
Sd/Chairperson
2 issues framed by the court
Whether the statutory deposit required for entertaining appeals can be reduced when no payment was made after the Initial Notice.
Whether two appeals relating to the same account require separate deposits for compliance with the SARFAESI Act.
2 provisions across 1 enactments
Hanume Gowda
The Bangalore City Co Operative Bank Ltd
Chairperson
As recorded by the court registry
9 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
