Vasantha Surgical Equipments v. State Bank of India
Case brief
What is this about?
The Debts Recovery Appellate Tribunal dismissed a waiver application seeking pre-deposit exemption. The court held that sale proceeds and rent cannot be adjusted against the mandatory pre-deposit, directing the appellant to deposit 50% of the debt due.
What did the court decide?
Waiver application dismissed; appellant directed to deposit 50% of the debt due within six weeks.
What the court decided
IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA
Diary No. 302 of 2021
THE HON’BLE MR. JUSTICE ANIL KUMAR SRIVASTAVA CHAIRPERSON
28.02.2023 M/s. Vasantha Surgical Equipments … Appellant -VsState Bank of India & Another … Respondents Mr. Nimish Mishra with Mr. Debjit Mukherjee and Mr. Ankit Chatterjee, Learned Counsel for Appellant
Mr. Debasish Chakrabarti with Ms. Sharmistha Pal, Learned Counsel for Respondent
Mr. Nemani Srinivas, Learned Counsel for Purchaser
THE APPELLATE TRIBUNAL :
I.A. 222 of 2022
The instant application has been filed by the Appellant under Section 18 (1) of the SARFAESI Act seeking waiver from pre-deposit. Ground taken in the application is that an amount of Rs.2,81,74,785.50 was demanded in the notice under Section 13 (2) of the SARFAESI Act dated 16th May, 2011 when the property was sold vide Sale Certificate dated 29th June, 2013 and an amount of Rs.5,16,00,000.00 has been received by Bank hence this amount be adjusted in the pre deposit.
Learned Counsel for the Appellant submits that the amount of sale is to be adjusted in the pre deposit.
Issues for consideration
2 issues framed by the court
Whether the appellant is entitled to rely on sale proceeds and rent received by auction purchaser for pre-deposit waiver under Section 18(1) of the SARFAESI Act.
Whether the mandatory provisions of pre-deposit under proviso to Section 18(1) of the SARFAESI Act can be bypassed when challenging the auction sale.
Parties & counsel
- appellant
M/s. Vasantha Surgical Equipments
- respondent
State Bank of India
Coram
Anil Kumar Srivastava
Case details
As recorded by the court registry
All orders in this case
11 orders share this CNR
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