Disposed

M/s Tuffware Industries v. Union Bank of India

DRAT8 Nov 2024IA/554/2023

Case brief

AI extract

What is this about?

The Tribunal directed the appellant to deposit ₹8,17,00,000 as pre-deposit in two instalments within three weeks each to entertain the appeal. Execution of recovery proceedings is stayed pending the first instalment. Default leads to dismissal.

What did the court decide?

Appellant directed to deposit ₹8.17 crores as pre-deposit in two instalments by 29.11.2024 and 20.12.2024. Execution stayed after first instalment.

M/s Tuffware Industries versus Union Bank of India — Company and Corporate | DRAT (2024)

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BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present : Mr. Justice Ashok Menon, Chairperson

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I.A. No.554/2023 (WoD)

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In Appeal on Diary No.1288/2022

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Between

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M/s. Tuffware Industries & Ors. … Appellant/s V/s.

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Union Bank of India …Respondent/s

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Ms Mumtaz Khan, Advocate for Appellants.

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Mr Rajesh Nagory along with Mr Aayush Kothari i/b Mrs Uma S. Fadia, Advocates for Respondent.

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-: Order dated: 08/11/2024:-

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I.A. No.554/2023 is the application for waiver of deposit wherein the appellant seeks the waiver of 25% of the pre-deposit amount by invoking the 3^rd proviso to Section 18(1) to entertain this appeal. The Ld. Counsel appearing for the respondent bank on instructions submits that he is conceding to the request made in the application that the application be allowed and the appellant be directed to deposit 25% of the pre-deposit amount for entertaining this appeal.

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In another appeal which arose from the same S.A., there was a direction of this Tribunal to deposit the same amount as pre-deposit and in a Writ Petition filed before the Hon’ble Bombay High Court, as Writ Petition No.15545/2023, vide order dated 06.05.2024, the Hon’ble Bombay High Court had directed the appellant to deposit ₹6.67 crores over and about the amount of ₹1.5 crores which was

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already deposited and the amount was directed to be deposited within a time frame. The appellant could not deposit the amount within the time frame which resulted in that appeal getting dismissed and there is an application now filed by the appellant for withdrawing the amount which was paid by them lying in deposit in this Tribunal. Since the appeal arises from the interlocutory order filed in the very same S.A., I find that the appellant has to deposit the very same amount which is determined by the Hon’ble Bombay High Court. Therefore, the appellant is directed to deposit ₹ 8,17,00,000/- as pre-deposit for entertaining this appeal. The amount of ₹8,17,00,000/- shall be deposited in two instalments within a gap of three weeks each as stated hereunder.

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Numbers of Instalments	Payment on or before
1^stInstalment of₹40,850,000	29.11.2024
2^ndInstalment of₹40,850,000	20.12.2024

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Upon deposit of the 1^st instalment of the pre-deposit, the execution proceedings before the Recovery Officer shall stand stayed till the next date of hearing.

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Default in payment of any of the amount/instalment on time shall entail the dismissal of the appeal without any further reference to this Tribunal.

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The amount shall be deposited in the form of a Demand Draft/RTGS with the Registrar of this Tribunal. Payment by RTGS shall be communicated to the Registry for verification.

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As and when the said amount is deposited, it shall be invested in term deposits in the name of Registrar, DRAT, Mumbai, with any

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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 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 02.12.2024 for reporting compliance of payment of 1^st instalment.

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Sd/Chairperson

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nrp-04

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M/s Tuffware Industries v. Union Bank of India

Case brief

What is this about?

What did the court decide?

M/s Tuffware Industries v. Union Bank of India

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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