Ms Repute Foods Private Limited and Ors. v. Central Bank of India
Case brief
What is this about?
This interim application concerns an appeal against a DRDT order denying relief under the SARFAESI Act. The CAT fixed a ₹9 crore pre-deposit, rejecting the prayer for a 25% waiver, and noted partial possession of properties.
What did the court decide?
Appellants directed to deposit ₹9 crores in two instalments to entertain the appeal; waiver of 25% pre-deposit rejected.
What the court decided
BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present : Mr. Justice Ashok Menon, Chairperson I.A. No. 230/2024 (WoD)
In Appeal on Diary No. 663/2024
Between
M/s. Repute Foods Pvt. Ltd. & Ors. … Appellant/s V/s. Central Bank of India …Respondent/s
Ms. Neeta Pandit, i/b M/s. A.R. Gupta & Co., Advocate for Appellants.
Mr. R.J. Singh, i/b M/s. R.J. Singh & Co., Advocate for Respondent.
The appellants are in appeal impugning the order dated 21.03.2024 in S.A. No. 879/2023 on the files of the Debts Recovery Tribunal – II, Ahmedabad (D.R.T) declining to grant any interim protection from the action taken by the respondent bank against them under the provisions of the Securitisation & Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (“SARFAESI Act”, for short) for want of a prima facie case and that there is no balance of convenience in favour of the appellants. The appellants are aggrieved and hence, in appeal.
- The appellants would contend that they have a very good prima facie case because the account was classified as a non-performing asset (NPA) without there being a default in payment for 90 days, contrary to the guidelines given by the RBI, and therefore, the entire
1
Issues for consideration
3 issues framed by the court
Whether to allow interim protection from bank action under the SARFAESI Act given discrepancies in NPA classification.
Whether the appellants are entitled to a 25% pre-deposit waiver due to financial strain.
Whether possession of properties has been taken such that the appeal is now infructuous.
Parties & counsel
- appellant
M/s. Repute Foods Pvt. Ltd. & Ors.
- respondent
Central Bank of India
Coram
Ashok Menon
Case details
As recorded by the court registry
All orders in this case
2 orders share this CNR
- Order 1 · Ashok Menon
- Order 2 — this page · Ashok Menon
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