Partly allowed

M/S .Sark Spice Produce Pvt. Ltd. v. South Indian Bank Limited

DRAT3 Oct 2023

Case brief

AI extract

What is this about?

Appellants sought waiver of statutory deposit under SARFAESI Act. Tribunal held interest to be accounted for by respondent bank; failing such disclosure, debt calculated as provisional demand minus paid amount. Directed 25% deposit of computed debt within two weeks.

What did the court decide?

Direction to appellants to deposit Rs. 1,77,73,499/- within two weeks on or before 17.10.2023, failing which appeal shall be rejected.

M/S .Sark Spice Produce Pvt. Ltd. versus South Indian Bank… — Company and Corporate | DRAT (2023)

¶1

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

¶2

IA 334/2023 In A.IR: 712/2023

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M/S Sark Spice Produce Pvt Ltd &Ors V/S The South Indian Bank Ltd &Anr

¶4

03/10/2023

¶5

This application is filed seeking waiver of statutory deposit required under Section 18 of SARFAESI Act, for entertaining the Appeal.

¶6

Advocate for petitioners/ appellants submitted that appeal is preferred against an interim order dated 2.3.2023 passed in IA 464/2023 in SA 77/2023 on the file of DRT-II, Ernakulam. He also submitted that as per Demand Notice dated 9.6.2021, outstanding amount is Rs.11,84,58,499.24p. It is submitted that subsequent to demand notice, a sum of Rs.4,73,64,503.26p is paid and the same is admitted by respondent bank by filing an affidavit today. It is submitted that considering these aspects, statutory deposit may be reduced.

¶7

On the other hand, advocate for respondent bank submitted that as per recent decision of Hon’ble Supreme Court of India, in re , M/s Siddha Neel Kanth Paper Industries Private Limited and another Vs. M/s Prudent ARC Limited and others (Civil Appeal No.8969/2022), interest also has to be taken into consideration for the purpose of calculating statutory deposit.

¶8

I have perused the material papers. In the affidavit filed today on behalf of respondent bank, though it is stated that interest has to be taken into consideration while calculating statutory deposit, respondent bank has not provided any information as to the outstanding as on the date of filing of the Appeal including interest. It is not for the Tribunal or for the appellant to calculate interest and it is for the respondent bank to either provide statement of account or furnish actual figure. As per Section 18 of SARFAESI Act, debt due as claimed by Secured Creditor is to be taken. As bank did not whisper anything in the affidavit filed today, amount demanded through Notice is to be taken into consideration. As respondent bank is not interested in providing the outstanding in the affidavit filed today and advocate for respondent bank sought further time to provide that information, I am not inclined to grant any further time because only at the request of respondent bank, matter is posted to this date from 25.9.2023.

¶9

As already referred to above, 13(2) notice amount is Rs. 11,84,58,499.24p and from this amount, amount already paid subsequent to demand notice which is Rs.4,73,64,503.26p has to be deducted to know the outstanding debt. On doing so, it comes to Rs.7,10,93,996/-.

¶10

As appeal is against an interim order, I am of the view directing petitioners/appellants to deposit 25% of Rs.7,10,93,996/- would meet the requirement under Section 18 of the SARFAESI Act, which comes to Rs.1,77,73,499/-.

¶11

Therefore, petitioners/appellants shall deposit Rs.1,77,73,499/-, within two weeks from today i.e., on or before 17.10.2023, failing which, appeal stands rejected.

¶12

On making such deposit, Registrar shall invest the same in a Nationalized Bank for a reasonable period and renew it periodically, till further orders are passed.

¶13

Post the matter on 18.10.2023 for compliance of deposit

¶14

Sd/Chairperson

M/S .Sark Spice Produce Pvt. Ltd. v. South Indian Bank Limited

Case brief

What is this about?

What did the court decide?

M/S .Sark Spice Produce Pvt. Ltd. v. South Indian Bank Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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