Smt Manoj Kumar Shah v. Punjab National Bank
Case brief
What is this about?
The Single Judge dismissed the appeal for want of mandatory pre-deposit of 25% towards the dues under the SARFAESI Act, holding auction proceeds cannot offset this requirement per Sidha Neelkanth Paper Industries. The case is adjourned to allow waiver application.
What did the court decide?
Seeking deposit within stipulated time and waiving the remaining 25% balance as claimed in the waiver application filed.
What the court decided
Appeal Dy. No. 1351/2023 Date: 20.12.2023
Smt. Manoj Kumar Shah Vs. Punjab National Bank & Ors.
Present: Shri A. K. Pal, Advocate holding brief of Shri Arvind Pal, counsel for the appellant, Shri Ankit Saran, counsel for the respondent-Bank,
Heard the learned counsel for the appellant.
The present appeal has been filed under section 18 of the SARFAESI Act against the order dated 25.05.2023 passed by the DRT, Dehradun in T.S.A. No. 28/2018 (Old S.A. No. 233/2011).
The report of the Registrar dated 04.12.2023 shows that I.A. No. 855/2023 being waiver application and I.A. No. 856/2023 being stay application have been filed. By the order impugned, the S.A. has been dismissed on the ground that the house loan was taken by the appellant by depositing the fake title deed of the property, which was mortgaged with the Bank, therefore, the appellant may explain on the next date as to how the loan taken by him is bad in law, whereas the fraud vitiates every right available under the statute.
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 .
Issues for consideration
2 issues framed by the court
Whether the 25% pre-deposit requirement under the third proviso of Section 18 of the SARFAESI Act is mandatory for entertaining the appeal.
Whether the amount realized by the Bank from the auction sale of the property can be considered towards the mandatory pre-deposit.
Parties & counsel
- appellant
Manoj Kumar Shah
- respondent
Punjab National Bank
Coram
R. D. Khare
Case details
As recorded by the court registry
All orders in this case
4 orders share this CNR
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