Smt Vijay Bansal v. Canara Bank

Appeal Dy. No. 631/2022 Date: 09.02.2023

Smt. Vijay Bansal Vs. Canara Bank

Present: Shri Manoj Kumar, Advocate holding brief of Shri Manoj Kumar Srivastava, counsel for the appellant,

The present appeal has been filed under section 18 of the SARFAESI Act against the interim order dated 04.08.2022 passed by the DRT, Allahabad in S.A. No. 498 of 2021. 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 appellants have 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 appellants are 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 appellants do 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 appellants within the stipulated period, list this case on 25.04.2023 for hearing on waiver of the rest 25% of the amount due.

Justice R. D. Khare Chairperson