Sheo Karan Pandey v. Gramin Bank of Aryavart and Anr.

Appeal Dy. No. 293/2022 Date: 06.02.2023

Sheo Karan Pandey Vs. Gramin Bank of Aryavart & Anr.

Present: Shri U. C. Mishra, Advocate holding brief of Shri R. S. Pandey, counsel for the appellant, Shri Pawan Kumar Mishra, counsel for the respondent-Bank,

A mention has been made on behalf of the learned counsel for the appellant that the arguing counsel Shri R. S. Pandey is out of station, therefore, he prays for adjournment.

The present appeal has been filed under section 18 of the SARFAESI Act against the final order dated 12.04.2022 passed by the DRT, Lucknow in S.A. No. 536 of 2018. As per second proviso of section 18 of the said Act, 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 to 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.

In the present case, the appellant has not deposited any amount towards minimum deposit of 25% of the amount due, which is mandatory in nature in view of the third proviso of section 18 of the SARFAESI Act. Therefore, the appellant is directed to deposit minimum 25% of the amount due, which is mandatory in nature, by the next date fixed 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 06.04.2023 for hearing on waiver of the rest 25% of the amount due.