Sree Sreevasa Godowns v. City Union Bank Limited
Case brief
What is this about?
The Tribunal held that the pre-deposit requirement under Section 18(2) of the SARFAESI Act applies to appeals against interim orders, not just final orders, following the Supreme Court's view in Sidha Neelkanth Paper Industries.
What did the court decide?
Appellant directed to make a pre deposit of 50% of Rs.8,91,02,517.00 within eight weeks.
What the court decided
IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA
Misc. Appeal Diary No. 359 of 2023
THE HON’BLE MR. JUSTICE ANIL KUMAR SRIVASTAVA CHAIRPERSON
06.07.2023 M/s. Sree Sreevasa Godowns & 10 Others … Appellants -VsCity Union Bank Limited … Respondent Mr. Amancharia V Gopal Rao, Learned Counsel for Appellants
Mr. Ambadipudi Satyanarayana, Learned Counsel Senior Advocate with Mr. Indradeep Basu and Ms. Swagata Roy, Learned Counsel for Respondent
THE APPELLATE TRIBUNAL :
For Admission
Instant appeal has arisen against an order dated 9th May, 2023 passed by Learned DRT-II, Hyderabad in I.A. 684 of 2023 in S.A. 151 of 2023 whereby prayer for interim protection was dismissed.
At the very outset the Registry reported that waiver application is not filed.
I have heard the Learned Counsel for Appellant as well as the Respondent on the issue of pre deposit. 2. Learned Counsel for Appellant submits that it is an appeal against an interim order wherein SARFAESI Application is still pending, hence the Appellant is under no obligation to make any pre deposit under second Proviso to Section 18 (2) of the SARFAESI Act, 2002.
Issues for consideration
2 issues framed by the court
Whether the mandatory pre-deposit provision under the second Proviso to Section 18(2) of the SARFAESI Act applies to an appeal against an interim order.
Whether the Appellate Tribunal requires 50% pre-deposit calculation based on the demand under Section 13(2) or the Possession Notice.
Parties & counsel
- appellant
M/s. Sree Sreevasa Godowns & 10 Others
- respondent
City Union Bank Limited
Coram
Anil Kumar Srivastava
Case details
As recorded by the court registry
- Court
- DRAT
- Decided on
- · July
- CNR
- 191090003592023
- Topic
- Banking and Recovery
All orders in this case
5 orders share this CNR
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