Disposed

Mrs. Jaswanti G. Badiani v. M/s. Pegasus Assets Reconstruction & Ors.

DRAT10 Jan 2024MISC APPLICATION/593/2016

Case brief

AI extract

What is this about?

In this proceedings before the Debts Recovery Appellate Tribunal, the court fixed a pre-deposit amount of ₹22 Lakhs in three instalments for the appellant to okay the appeal, overriding the request for a reduced deposit rate under Section 18(1) of the SARFAESI Act.

What did the court decide?

Directed appellants to pay ₹22 Lakhs pre-deposit in three instalments by 21.02.2024 for entertaining the appeal.

Mrs. Jaswanti G. Badiani versus M/s. Pegasus Assets… — Banking and Recovery | DRAT (2024)

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BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present: Mr Justice Ashok Menon, Chairperson M.A. No.593/2016 (WoD)

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Appeal No. 198/2016

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Between

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Jaswanti G. Badiani … Appellant/s V/s.

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M/s Pegasus Assets Reconstruction Company Pvt. Ltd. & Ors. …Respondent/s

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Mr Herbert A Naronha, Advocate for Appellant.

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Mr MadhurRai along with Ms Sneha Nandgaonkar, i/b M/s PRS Legal, Advocate for Respondent No. 1.

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Mr. Sunil Humbre, Advocate for Respondent No. 3 and 4.

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-: Order dated: 10/01/2024:-

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The Appellants are in appeal impugning the order dated 30.12.2015 in Exhibit 17 in S.A. No. 86/2015 on the files of the Debts Recovery Tribunal-III, Mumbai (D.R.T) whereby the Ld. Presiding Officer dismissed the application for amendment of the S.A. to incorporate a subsequent action taken u/s. 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. (“ the SARFAESI Act” for short) against the Appellants stating that the provisions of amending the plaint under the Civil Procedure Code do not apply to the proceedings under the SARFAESI Act and therefore it cannot be allowed.

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The Appellant contends that he is a senior citizen but has no vocation or means of livelihood and therefore seeks indulgence of this Tribunal by invoking the third proviso of u/s. 18(1) of the SARFAESI Act to keep the mandatory pre-deposit to a minimum of

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25% of the amount demanded under the demand notice u/s. 13(2) of the SARFAESI Act.

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The Ld. Counsel appearing for the Respondent bank has vehemently opposed this application stating that no indulgence has been shown that the Appellants is directed to deposit 50% of the amount and that the present dues are around ₹ 3 Crores. The Appellant has made out a prima facie case and has also to some extent that she is under financial strain.

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Under the circumstances the Appellant is directed to deposit a sum of ₹ 22 Lakhs as pre-deposit for entertaining this appeal. The said amount shall be paid in three instalments within a gap of two weeks each, as stated hereunder.

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Numbers of Instalments Payment on or before
1^stInstalment₹7,00,000/- 24.01.2024
2^ndInstalment₹7,00,000/- 07.02.2024
3^rdInstalment₹8,00,000/- 21.02.2024

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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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