M/S Sahu Chawal Mill v. Punjab National Bank
Case brief
What is this about?
The Tribunal held that it lacks power to reduce the mandatory pre-deposit requirement below 25% of the amount due under Section 18 of the SARFAESI Act. An order directs the appellant to deposit at least 25% before the appeal can be entertained, noting that failure to do so results in dismissal.
What did the court decide?
Direction to deposit minimum 25% of the amount due for the appeal to be entertained; otherwise, dismissal of the appeal.
Appeal Dy. No. 239/2023 Date: 19.09.2023
M/s Sahu Chawal Mill Vs. Punjab National Bank
Present: Shri Himanshu Mishra, Advocate holding brief of Shri Rakesh Mishra, counsel for the appellant,
The present appeal has been filed under section 18 of the SARFAESI Act against the order dated 27.01.2023 passed by the DRT, Allahabad in S.A. No. 60 of 2023. In the present case, the appellant has not deposited any amount towards pre-deposit, whereas the second proviso of said section says that no appeal shall be entertained unless the borrower has deposited with the Appellate Tribunal 50% of the amount of debt due from him, as claimed by the secured creditor or determined by the Debt Recovery Tribunal, whichever is less. Further, the third proviso of the said section says that the Appellate Tribunal may, for the reasons to be recorded in writing, reduce the amount not less than 25% of the debt referred to in the second proviso. As such, this Tribunal has no power to reduce the amount below to 25% of the amount due. Therefore, the appellant is directed to deposit minimum 25% of the amount due, which is mandatory in nature, for entertaining the appeal. If the appellant does not deposit the said amount prior to the next date fixed, the appeal shall stand dismissed as not entertainable for want of mandatory pre-deposit without further reference to this court. If the said amount is deposited by the appellant within the stipulated period, list this case on 09.11.2023 for hearing on waiver of the rest 25% of the amount due.
Justice R. D. Khare Chairperson
Anupam
Issues for consideration
3 issues framed by the court
Whether the Deposit Recovery Tribunal has the statutory power to reduce the mandatory pre-deposit requirement below 25% of the amount due.
Whether an appeal under Section 18 of the SARFAESI Act is maintainable without making the mandatory pre-deposit of the minimum statutory percentage.
Whether the appellant must deposit a minimum of 25% of the amount due prior to hearing the appeal on waiver of the deposit.
Parties & counsel
- appellant
M/s Sahu Chawal Mill
- respondent
Punjab National Bank
Coram
R. D. Khare
Case details
As recorded by the court registry
All orders in this case
5 orders share this CNR
Similar cases
Judgements on the same questions, provisions and authorities, from every court