The appellate court held that auction proceeds cannot satisfy the mandatory 25% pre-deposit requirement under Section 18 of the SARFAESI Act, citing a recent Apex Court decision.
Direction to deposit 25% of the amount due by the next date fixed for entertaining the appeal; otherwise, the appeal shall stand dismissed.
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Appeal Dy. No. 371/2019 Date: 15.02.2023
Shivendra Singh Bhadauria Vs. Punjab National Bank & Anr.
Present: Shri D. N. Awasthi, counsel for the appellant, Shri A. P. Singh, counsel for the respondent-Bank,
The present appeal has been filed under section 18 of the SARFAESI Act against the order dated 10.04.2019 passed by the DRT, Allahabad in S.A. No. 145 of 2013.
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, as the amount realized by the Bank from auction sale of the property of the appellant cannot be taken into consideration towards pre-deposit in view of the judgment passed by the Hon’ble Apex Court in Civil Appeal No. 8969 of 2022- M/s Sidha Neelkanth Paper Industries Private Limited & Another Vs. Prudent ARC Limited & Others decided on 05.01.2023 .
In the waiver application, the learned counsel for the appellant has stated that the property has been auctioned by the respondent-bank, but the same cannot be considered towards pre-deposit in view of the judgment as referred to above. Therefore, the appellant is directed to deposit 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 08.05.2023 for hearing on waiver of the rest 25% of the amount due.
Justice R. D. Khare Chairperson
Anupam
1 issue framed by the court
Whether auction proceeds can be treated as pre-deposit under Section 18 of the SARFAESI Act in view of the Apex Court judgment in Civil Appeal No. 8969 of 2022.
Colour shows how this judgement treated each authority
M/s Sidha Neelkanth Paper Industries Private Limited & Another Vs. Prudent ARC Limited & OthersDistinguished¶5
Civil Appeal No. 8969 of 2022- M/s Sidha Neelkanth Paper Industries Private Limited & Another Vs. Prudent ARC Limited & Others decided on 05.01.2023
1 provisions across 1 enactments
Shivendra Singh Bhadauria
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
