Allowed

Ms Tbpr Infra Projects Pvt. Ltd. v. State Bank of India

DRAT17 Mar 2023REGULAR APPEAL/59/2023

Case brief

AI extract

What is this about?

The Debt Recovery Appellate Tribunal allowed an application for waiver of pre-deposit under Section 18(1) of the SARFAESI Act. The Court held that depositing more than 50% of the dues post-notice satisfied the maintainability requirement, distinguishing it from a Supreme Court case regarding auction proceeds.

What did the court decide?

Application for waiver is allowed; appellant directed to proceed with the appeal.

Ms Tbpr Infra Projects Pvt. Ltd. versus State Bank of… — Insolvency and Bankruptcy | DRAT (2023)

¶1

IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA

¶2

(Dy. No. 608 of 2022)

¶3

(Arising out of S.A. No. 97 of 2022 in DRT -1 Hyderabad)

¶4

THE HON’BLE MR. JUSTICE ANIL KUMAR SRIVASTAVA

¶5

CHAIRPERSON

¶6

17.03.2023

¶7

M/s TBPR Infra Projects Pvt. Ltd. … Appellant -VsState Bank of India ….Respondents

¶8

Mr. N. Srinivas, Learned Counsel, Mr. S. Jaiswal, Learned Counsel for the Appellant Mr. Ajay Gaggar, Learned Counsel Mr. Mukul Banerjee, Learned Counsel for the Respondent

¶9

THE APPELLATE TRIBUNAL :

¶10

I.A. No. 406 of 2022 an Application for waiver from making pre deposit under Section 18(1) of the SARFAESI Act. Opposition filed by the Bank along with Statement of Account as due on date. Record shows that in the notice u/s 13(2) an amount of Rs. 10,22,41,736/- was due. Learned Counsel for the Respondent submits that as on date an amount of Rs. 13.89 crore including interest is due. Learned Counsel for the Appellant submits that after issuance of the notice u/s 13(2) of the SARFAESI Act, an amount of Rs. 7.61 crore was deposited by the Appellant. It is submitted that even if the amount as due as on date i.e. Rs. 13.89 crore is taken into consideration already more than 50% has been deposited by the Appellant which satisfies the maintainability provision of Section 18(1) of the SARFAESI Act.

¶11

¶12

Learned Counsel for the Respondent has further placed judgment of the Hon’ble Apex Court in M/s Sidha Neelkanth Paper Industries Private Limited & Anr Vs. Prudent ARC Limited & Ors delivered on 5^th January, 2023, Learned Counsel submits that the Appellant cannot take advantage of the deposits made by him after issuance of notice under Section 13(2) in view of the law laid down by the Hon’ble Apex Court in Siddha Neelkanth (supra). As far as question of deposit is concerned in Siddha Neelkanth (supra), Hon’ble Apex Court has held that the benefit of the amount realized by selling the secured properties deposited by the auction purchaser cannot be extended in favour of the borrower. In the present case factual position is different. Secured assets were not auctioned. Rather Appellant must have deposited the amount of Rs. 7.61 crore and so. Hence, the Respondent cannot take advantage of the law laid down in the Siddha Neelkanth (supra).

¶13

Since more than 50% of the amount due as on date including interest is already deposited by the Appellant, hence, I found the ground to be sufficient. Accordingly, I.A. No. 406 of 2022 is allowed. Appellant is directed to proceed with the Appeal and is granted waiver under Section 18(1) of the SARFAESI Act.

¶14

Let the Appeal be registered as regular appeal by providing a regular appeal number. Respondent may file the opposition within four weeks with advance copy to the

¶15

¶16

Appellant who may file rejoinder within two weeks thereafter.

¶17

List on 12^th June, 2023 for hearing of Appeal.

¶18

(Anil Kumar Srivastava,J) Chairperson

¶19

Dated 17^th March, 2023

¶20

5/tp

Ms Tbpr Infra Projects Pvt. Ltd. v. State Bank of India

Case brief

What is this about?

What did the court decide?

Ms Tbpr Infra Projects Pvt. Ltd. v. State Bank of India

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

All orders in this case

Similar cases

Vasantha Arumugam versus South Indian Bank

Ms Eluri Co. operative Urban Bank Ltd. versus Sri Gajavalli Kishore

Ms Vibha Agrotech Limited And Others versus Punjab National Bank

Swadesh Ranjan Das versus Ao Bangiya Gramin Vikas Bank

Smt N Deepa versus Union Bank of India

Manne Srinivas versus State Bank of India