Disposed

Rajat Infrastructure Private Limited v. Union Bank of India and Ors.

DRAT20 Jun 2024IA/203/2023

Case brief

AI extract

What is this about?

The debt recovery tribunal directd the appellant to deposit 50% of the outstanding debt of approximately Rs. 121 crore as a mandatory pre-condition for entertaining the appeal regarding SARFAESI actions and the auction sale of property.

What did the court decide?

Appellant directed to deposit 50% of the debt (Rs. 609 crore) with the Tribunal within four weeks to entertain the appeal.

Rajat Infrastructure Private Limited versus Union Bank of… — Execution and Attachment | DRAT (2024)

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BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present : Mr. Justice Ashok Menon, Chairperson I.A. No. 203/2023 (WoD)

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Misc. Appeal No. 85/2019

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Between

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Rajat Infrastructures Pvt. Ltd. … Appellant/s V/s.

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Union Bank of India & Ors. …Respondent/s Mr. Sanath P., i/b Bhagyashree Keny, Advocate for Appellant. Mr. Nainesh Amin, Advocate for Respondents. Mr. Nikhil Rajani, along with Ms. Shobha Chavan, i/b M/s. V. Deshpande & Co., Advocate for Auction Purchaser.

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-: Order dated: 20/06/2024:-

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The appellant is in appeal impugning the order dated 11.11.2019 in I.A. No. 822/2019 in S.A. No. 115/2019 on the files of Debts Recovery Tribunal – I, Mumbai (D.R.T) declining to grant any protection regarding the Sarfaesi action initiated by the respondent bank for recovery of debt under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. (“ the SARFAESI Act” for short).

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The subject property was put up for auction and sold to the auction purchaser. The appellant has challenged the sale as well as the Sarfaesi measures initiated before that. The appellant intends to apply for an amendment incorporating the challenge to the sale in the S.A. which is still pending consideration.

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To entertain this appeal the appellant will first have to comply with the mandatory provisions of Sec. 18(1) of the SARFAESI Act by making a pre-deposit. The application for waiver of deposit is sought for a complete waiver of the pre-deposit which by any means

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is not possible because the appellant will have to comply with the mandatory provision by depositing 50% of the debt due.

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Since the sale also is now challenged by the appellant, the debt due would be the debt inclusive of interest as of the date of filing the appeal. The respondent has filed a reply indicating that the total outstanding due from the appellant would be ₹ 1218,07,63,429.22 and therefore insists that the appellant be directed to deposit 50% of the said amount.

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The perusal of the application for waiver of the deposit does not indicate that the appellant is undergoing any financial strain since there is no pleading to that effect. There is no prima facie case in favour of the appellant challenging the interlocutory order because the sale has already taken place and what the appellant wanted was to get the sale deferred since the sale has taken place the prayer to defer the sale will not lie.

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Hence, for entertaining the appeal, the appellant will have to deposit 50% of the said amount i.e. ₹ 609,03,81,714.61/-. The appellant is therefore directed to deposit the said amount within four weeks i.e. on or before 18.07.2024. In default, the appeal shall stand dismissed, without any further reference to this Tribunal.

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The amount shall be deposited in the form of a Demand Draft with the Registrar of this Tribunal.

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As and when the said amounts are deposited, they shall be invested in term deposits in the name of Registrar, DRAT, Mumbai, with any nationalised bank, initially for 13 months, and thereafter to be renewed periodically.

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With these observations, the I.A. is disposed of. The

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Respondent is at liberty to file a reply in the Appeal with an advance copy to the other side.

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Post on 19.07.2024 for reporting compliance concerning the payment.

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Sd/Chairperson

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rm-2

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Rajat Infrastructure Private Limited v. Union Bank of India and Ors.

Case brief

What is this about?

What did the court decide?

Rajat Infrastructure Private Limited v. Union Bank of India and Ors.

Case brief

What is this about?

What did the court decide?

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