Disposed

Mr Pravin Dhirajlal Gediya v. Icici Bank Limited

DRAT12 Dec 2024IA/788/2024

Case brief

AI extract

What is this about?

The DRAT granted interim relief on an appeal challenging SARFAESI measures. The Tribunal stayed the possession sale until 14.12.2024, contingent on the appellants depositing ₹86 lakhs as pre-deposit to be paid in specified instalments, with dismissal upon default.

What did the court decide?

The possession scheduled for 14.12.2024 is deferred, subject to deposit of ₹86,00,000/- as pre-deposit by 26.12.2024.

Mr Pravin Dhirajlal Gediya versus Icici Bank Limited — Company and Corporate | DRAT (2024)

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BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present: Mr. Justice Ashok Menon, Chairperson I.A. No. 788/2024 (WoD) In

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Misc. Appeal on Diary No. 2387/2024

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Between

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Pravin Dhirajlal Gediya & Ors. … Appellant/s V/s.

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The Authorized Officer, …Respondent/s ICICI Bank Ltd.

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Mr Sunil Humbre i/b Mr Ritesh Patadia, Advocate for Appellants. Mr R.L. Motwani, Advocate for Respondent.

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The matter is taken up for hearing by way of a praecipe filed by the appellants for seeking urgent relief.

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The appellants are in appeal impugning the order dated 05.11.2024 allegedly passed by the Debts Recovery Tribunal-II, Ahmedabad (DRT) in Securitisation Application No. 288/2024 (S.A.) filed by the appellants challenging the Sarfaesi measures initiated by the respondent bank for recovery of debt allegedly due under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”, for short).

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The appellants have raised several grounds of challenge. It is stated that the demand notice u/s 13(2) does not comply with the mandatory requisite of giving bifurcation of the principal amount and

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interest for recovery u/s 13(3). It is further contended that the name and designation of the authorized officer are not shown in the demand notice. It is also contended that the nine-pointer affidavit accompanying the application u/s 14 filed before the Ld. Chief Judicial Magistrate, Junagadh does not indicate the amount due as of the date of filing of that application and therefore, there is a violation of the provision u/s 14. The order, therefore, is not sustainable and cannot be executed.

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The Ld. Counsel appearing for the appellants submits that on 05.11.2024, interim reliefs sought by the appellants were heard but it was reserved for orders on 06.11.2024 and therefore, the order dated 05.11.2024 is not appealable. The maintainability of the appeal, therefore, without an amendment incorporating the challenge to the order dated 06.11.2024 is doubtful. The DRT had earlier directed the appellants to pay 10% of the debt due vide order dated 24.05.2024 and to approach the bank with an OTS proposal. The appellants paid 10% of the debt due as of that date and also approached the bank with an OTS proposal which was rejected for the reason that the offer was inadequate. The taking of possession scheduled was deferred. The interim relief was granted till the next date of hearing testing the bonafides of the appellants regarding their proposal to settle the dues. Subsequently, when the relief sought for injunction was heard in detail and the order passed on 06.11.2024 the appellants were again granted protection subject to payment of 25% in two tranches and to submit a revised OTS proposal which has not been paid or complied with by the appellants.

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There is no prima facie case for the appellants to get this appeal entertained. They have also not produced any documents to prove their impecuniosity. Hence, the appeal can be entertained only on payment of pre-deposit without any concession based on the amount demanded in the demand notice. The demand notice dated 08.02.2023 demands a sum of ₹1,76,15,819/-. The appellants are, therefore, directed to deposit ₹ 86,00,000/- as pre-deposit for entertaining this appeal. The Ld. Counsel appearing for the appellants offers to pay ₹20 lakhs by way of RTGS tomorrow before 4 p.m. The balance amount of ₹ 66,00,000/- shall be paid in two instalments within a gap of two weeks each as stated hereunder.

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Numbers of Instalments	Payment on or before
1^stInstalment of₹33,00,000	26.12.2024
2^ndInstalment of₹33,00,000	09.01.2025

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Subject to the payment of the agreed amount, the possession scheduled on 14.12.2024 shall stand deferred till the next date of hearing.

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It is made clear that in case of any 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 27.12.2024 for reporting compliance of 1^st instalment of payment of pre-deposit.

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Sd/Chairperson

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nrp- 07

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Mr Pravin Dhirajlal Gediya v. Icici Bank Limited

Case brief

What is this about?

What did the court decide?

Mr Pravin Dhirajlal Gediya v. Icici Bank Limited

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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