M/S Shri Ram Fruit Bhandar and Another v. Bank of India

Appeal Dy. No. 642/2024 Date: 08.05.2024

M/s Shri Ram Fruit Bhandar & Anr. Vs. Bank of India

Present: Shri V. K. Shukla, counsel for the appellant,

Heard the learned counsel for the appellant.

The present appeal has been filed under section 18 of the SARFAESI Act against the interim order dated 03.04.2024 passed by the Tribunal below in S.A. No. 367/2020, whereby the appellant has been directed to deposit Rs. 25.00 lacs within two months and subject to the said deposit, the order passed by the District Magistrate for taking possession has been kept in abeyance.

It is further contended that against the notice under section 13(2) of the SARFAESI Act was issued for Rs. 98,97,640/-, the appellant has deposited Rs. 17.00 lacs with the Bank on 09.01.2023 and further a sum of Rs. 8.00 lacs before this Tribunal, thus, a total sum of Rs. 25.00 lacs has been deposited, which is 25% of the demanded amount. The further contention of the appellant is that against the dues of Rs. 98,97,640/-, the appellant has already deposited Rs. 25.00 lacs, therefore, the direction for deposit of 25% of the amount due within 2 months is absolutely bad in law, therefore, it is prayed that no further amount is required to be deposited.

Learned counsel for the appellant contends that the Tribunal below has failed to consider the objection of the appellant that Rs. 17.00 lacs has already been deposited, which has not been considered and the notice under section 13(2) of the SARFAESI Act has not been given to the guarantor and the affidavit, which was relied upon, was not pertaining to the