Smt Sangeeta Arora v. Bank of Baroda
Case brief
What is this about?
The High Court held that the SARFAESI Act mandates a pre-deposit for entertaining appeals. Since the appellant failed to deposit the required amount, the court retained jurisdiction to order a minimum 25% deposit and dismissed the case if not complied with.
What did the court decide?
The appellant was directed to deposit a minimum of 25% of the amount due; failure to do so would result in dismissal of the appeal.
What the court decided
Appeal Dy. No. 1026/2022 Date: 29.05.2023
Smt. Sangeeta Arora Vs. Bank of Baroda
Present: Shri Sahil Srivastava, Advocate holding brief of Shri Udai Chandani, counsel for the appellant, Shri S. K. Singh, counsel for the respondent-Bank,
The office report dated 26.05.2023 shows that no pre-deposit has been made.
In the present case, the appellant has not deposited any amount towards pre-deposit, whereas the second proviso of section 18 of the SARFAESI Act 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. 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 17.08.2023 for hearing on waiver of the rest 25% of the amount due.
Justice R. D. Khare Chairperson
Anupam
Issues for consideration
2 issues framed by the court
Whether an appeal under the SARFAESI Act can be entertained without the mandatory pre-deposit of 50% of the debt.
Whether the Appellate Tribunal has the discretion to reduce the pre-deposit requirement.
Parties & counsel
- appellant
Smt. Sangeeta Arora
- respondent
Bank of Baroda
Coram
R. D. Khare
Case details
As recorded by the court registry
- Court
- DRAT
- Decided on
- · May
- CNR
- 091090010262022
- Topic
- Banking and Recovery
All orders in this case
14 orders share this CNR
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