M/ S Simran Food Products and Anr. v. Allahabad Bank
Case brief
What is this about?
Appeal against a DRT order under the SARFAESI Act. Court directed appellant to deposit 25% of the amount due as mandatory pre-deposit. Appeal dismissed if non-compliant; listing fixed for hearing on waiver of remaining 25%. Amended cause title also required.
What did the court decide?
Appellant directed to file amended cause title and deposit 25% of amount due; appeal conditional on pre-deposit; listed for waiver hearing.
Appeal Dy. No. 270/2019 Date: 02.02.2023
M/s Simran Food Products & Anr. Vs. Allahabad Bank
Present: None for the appellants, Shri S. P. Dwivedi, Advocate holding brief of Shri P. K. Srivastava, counsel for the respondent-Bank,
The office report dated 01.02.2023 shows that inspite of earlier order dated 09.11.2022 of this Tribunal, no amended cause title has been filed by the appellant. Let the same be filed by the next date, failing which appropriate order shall be passed.
The present appeal has been filed under section 18 of the SARFAESI Act against the order dated 02.08.2021 passed by the DRT, Allahabad in M.A. No. 63 of 2019.
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
Issues for consideration
3 issues framed by the court
Whether the amount realized by the Bank from auction sale can be considered towards mandatory pre-deposit under section 18 of the SARFAESI Act.
Whether the appeal is maintainable without deposit of 25% of the amount due.
The procedure for entertaining the appeal pending compliance with pre-deposit requirements.
Parties & counsel
- appellant
M/s Simran Food Products & Anr
- respondent
Allahabad Bank
Coram
R. D. Khare
Case details
As recorded by the court registry
- Court
- DRAT
- Decided on
- · February
- CNR
- 091090002702019
- Topic
- Banking and Recovery
All orders in this case
5 orders share this CNR
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