M/ S Vishal Iron and Steel Corporation and Anr. v. Bank of Baroda

Appeal Dy. No. 132/2019 Date: 23.02.2023

M/s Vishal Iron and Steel Corporation and Anr. Vs. Bank of Baroda

Present: Shri Anirudh Pandey, Advocate holding brief of Shri V.K. Shukla, counsel for the appellants, Shri Avinash Jaiswal, counsel for the respondent-Bank,

The office report dated 22.02.2023 shows that no amendment has been carried out pursuant to the order dated 07.07.2022. Let the same be done by the next date. The said report further shows that no pre-deposit has been made.

The present appeal has been filed under section 18 of the SARFAESI Act against the order dated 24.04.2018 passed by the DRT, Jabalpur in S.A. No. 28 of 2018. In the present case, the appellant has not deposited any amount towards predeposit, whereas the second proviso of said section 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. As such, this Tribunal has no power to reduce the amount below to 25% of the amount due. 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 12.05.2023 for hearing on waiver of the rest 25% of the amount due.

Justice R. D. Khare