M/S Super Iron v. Axis Bank and Anr.
Case brief
What is this about?
The bench held that auction proceeds cannot count as pre-deposit citing a recent Supreme Court judgment. The appellant was directed to deposit 25% of the due amount or face dismissal by the next date updated.
What did the court decide?
Appellant directed to deposit 25% of amount due by the next fixed date or face dismissal of the appeal.
What the court decided
A compact analysis
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Appeal Dy. No. 175/2019 Date: 03.02.2023
M/s Super Iron Vs. Axis Bank & Anr.
Present: None for the appellant, Shri S. K. Gupta, counsel for the respondent-Bank,
The office report dated 02.02.2023 shows that neither predeposit amount has been made nor any reply has been filed on behalf of the respondents.
The present appeal has been filed under section 18 of the SARFAESI Act against the order dated 01.05.2019 passed by the DRT, Jabalpur in S.A. No. 16 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 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 21.04.2023 for hearing on waiver of the rest 25% of the amount due.
Issues for consideration
2 issues framed by the court
Whether the appellant is required to make a 25% pre-deposit towards the amount due despite the auction of property by the bank.
Whether the proceeds from the auction of the appellant property can be considered towards the mandatory pre-deposit.
Parties & counsel
- appellant
M/s Super Iron
- respondent
Axis Bank & Anr
Coram
R. D. Khare
Case details
As recorded by the court registry
- Court
- DRAT
- Decided on
- · February
- CNR
- 091090001752019
- Topic
- Banking and Recovery
All orders in this case
5 orders share this CNR
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