Held that the mandatory pre-deposit of 25% is required for entertaining an appeal under the relevant section. The appellant was directed to deposit the amount or face dismissal of the appeal on the next date.
Directing the appellant to deposit minimum 25% of the amount due to make the appeal maintainable.
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Appeal Dy. No. 905/2022 Date: 28.03.2023
Shanti Devi Jain Memorial Trust & Anr. Vs. Punjab National Bank
Present: Shri Amit Khanna, counsel for the appellants, Shri A. K. Jaiswal, Advocate holding brief of Shri Ashok Bhatnagar, counsel for the respondent-Bank,
In the present case, the appellants have 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 18.05.2023 for hearing on waiver of the rest 25% of the amount due.
Justice R. D. Khare Chairperson
Anupam
2 issues framed by the court
Whether an appeal to the Appellate Tribunal could be entertained without the mandatory 25% pre-deposit of the debt.
Whether the Tribunal has power to reduce the pre-deposit amount below the statutory minimum.
Shanti Devi Jain Memorial Trust & Anr.
Punjab National Bank
R. D. Khare
As recorded by the court registry
8 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
