Disposed

Ms Shivshankar Plywood Industries Pvt. Ltd. v. Asset Reconstruetion Company India Ltd.

DRAT15 Apr 2025IA/102/2025

Case brief

AI extract

What is this about?

The Tribunal rejected the application for waiver of pre-deposit under Section 21 of the RDDB & FI Act. Instead, it directed appellants to deposit 40% of the due amount in two equal instalments within six weeks as a condition for entertaining the appeal.

What did the court decide?

Appellants directed to deposit 40% of the due amount (Rs. 15,52,94,766/-) in two instalments within six weeks; appeal contingent on deposit.

Ms Shivshankar Plywood Industries Pvt. Ltd. versus Asset… — Arbitration | DRAT (2025)

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DEBT RECOVERY APPELLATE TRIBUNAL - MUMBAI

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IA 102/2025 (WOP) In Appeal Dv.No.677/2024

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Dated :15.4.2025

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This application is filed seeking waiver of pre-deposit under Section 21 of RDDB & Fl Act for entertaining the appeal.

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Ld. Counsel for petitioners/appellants submitted that respondent filed OA No.36/2007 for recovery of a sum of Rs.9,87,57,259.22p due as on 15.1.2007 with interest at 19.25 % p.a. from the date of filing till the date of realization. After contest, this OA was'allowed on 28.12.2023 determining the aforesaid amount as due with further interest at 17.5% p.a. from the date of filing of the OA till the date of realization.

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Ld. Counsel further submitted that first petitioner company suffered loss and closed its business activities. In such circumstances, petitioner filed this waiver application seeking waiver of pre-deposit.

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Ld. Counsel for respondent bank opposed this waiver application and submitted that amount due from the petitioner is huge i.e., Rs.38,82,36,914/- as on 27.3.2025 and complete waiver cannot be entertained.

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I have considered the rival submissions and perused the records.

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From the facts narrated above, it is seen that OA was filed in the year 2007 for recovery of a sum of Rs.9,87,57,259.22p and the loan facility was availed in the year 1995. After this long period, OA was finally disposed on 28.12.2023 determining the aforesaid amount as due with future interest.

...Contd./-

o>y■ Ho fc'n | am-H-

In the said circumstances, this Tribunal is of. the view that directing the petitioners to deposit 40% of the amount due as on 27.3.2025 i.e., Rs.38,82,36,914/- towards hre-deposit would meet the requirement under Section 21 of the RDDB & Fl Act, for entertaining the appeal.

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Accordingly, petitioners/appellants ares directed to deposit 40% of Rs.38,82,36,914/ which comes to Rs.15,52,94,766/- in two isqual instalments within six weeks from today, out of which, first instalment of Rs.7,76.47,383/- within three weeks from today i.e., on or before 6.5.2025 and the second instalment of Rs.7,76,47,383/- within three weeks thereafter i.e., on or before 27.5.2025, failing which, appeal would stand rejected.'

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In case pre-deposit is made within the stipulated period as mentioned above , Registry is directed to number the Appeal if it is otherwise in order and Registrar shall invest the same in a Nationalized Bank for a reasonable period and renew it periodically, till further orders are passed.

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Post the matter on 29.5.2025 for further proceedings.

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CHAIRPERSON/DRAT, CHENNAI (IN-CHARGE, DRAT, MUMBAI)

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Ms Shivshankar Plywood Industries Pvt. Ltd. v. Asset Reconstruetion Company India Ltd.

Case brief

What is this about?

What did the court decide?

Ms Shivshankar Plywood Industries Pvt. Ltd. v. Asset Reconstruetion Company India Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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