The Tribunal directed the appellants to deposit Rs.5 Lakhs (in two installments) instead of Rs.5.25 Lakhs. Pending deposit, possession was deferred. The appeal remained stayed subject to compliance.
Direct deposit of Rs.5 Lakhs (25,000 on 21.07.2025); possession deferred; appeal stayed subject to deposit.
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DEBT RECOVERY APPELLATE TRlBUNAL-MUMBAl (SITTING AT -.CHENNAI)
| Dated: 07,07.2025. This Application is filed seeking waiver of statutory .deposit The matter is taken up for hearing by . way of a Praecipe filed by the Petitioners/AppeUantS for seeking Urgent relief. LA. No. 372/2025 jWoD) In Misct Appeal Dy.Nd, 861/2025 |
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| required, .Under Section. 18(1) of the: SARFAES1 Act, 2002, for entreating the Appeal. |
| The' Appeal is filed against the order passed in. LA. No. |
| 1623/2025 in S.A. Nd.81/2025 by Learned Presiding Ofiicer, |
| DRT-III, Mumbai. The aforesaid S.A. was filed challenging the |
| proceedings initiated under SARFAESI Act, 2002 including pre |
| dated Court intimation notice .06.01.2025 issued by |
| Commissioner, Nashik. Learned Counsel for Petitipners/Appcllants submitted that in an earlier occasion, when possession was sought to be taken, |
| OTS proposal is accepted, Petitiohers/Appellants v>ere granted Petitioners/Appellants deposited Rs.3 Lakhs and the Tribunal granted 15 days time for them to submit OTS proposal and if the |
| three months- time to 'settle the matter with: the Respondent |
| OTS; proposal as well, and that OTS proposal dated 17.0'2.2025 Institution. Accordingly, Rs.3 Lakhs was deposited and submitted |
| was rejected by Respondent Institution. The Respondent |
| Institution again scheduled the possession. When challenged by |
| seekihg stay in LA. Nd. .1623/2025, Learned Presiding Officer |
| directed the Petitidhcrs/Appellahts to make deposit, of Rs.5 |
| Lakhs. Challenging this prdcfj this appeal is filed along with Waiver Application. |
In reply, Learned Counsel for Respondent Institution submitted that under the OTS Proposal, Petitioners/Appellants incorporated certain conditions which cannot be accepted by Respondent Institution. Instead of paying the OTS proposal amount of Rs.18 Lakhs in one instalment, the Petitioners/Appellants sought to pay in six instalments at Rs.3 Lakhs each, and also sought Rs.3 lakhs to be kept in no-lien account. These conditions are not acceptable to the Respondent Institution, and therefore-, OTS proposal was rejected, on these grounds, and also on the ground that the OTS amount offered was very Ipw.
Considered the rival submissions and perused the records.
As per the impugned order, the amount due on the date of passing of order was Rs.21 Lakhs. Even bare minimum is fixed at 25% of the amount due for entertaining the Appeal, the Petitioners/Appellants have to deposit Rs.5.25 Lakhs. Therefore, this Tribunal is of the view directing the Petitioners/Appellants to deposit Rs.5.25 Lakhs, in two instalments, would meet the requirement under Section 18 (1) of SARFAES1 Act, 2002, for entertaining, the Appeal.
At this juncture, Learned Counsel for Petitioners/Appellant shows through Video Conferencing that he is ready with a Demand Draft of Rs.5 Lakhs today.
Therefore, the Petitioners/Appellants are directed to deposit Rs.5 Lakhs with the Registrar, DRAT, Mumbai, today itself, i.e. 07.07.2025 and the remaining amount of Rs.25,000/shall be deposited on or before 21.07.2025.
The Registrar, DRAT, Mumbai, is directed to receive the Demand Draft of Rs.5 Lakhs deposited by Petitioners/Appellants.
. (Wl
| If Petitioners/Appcilarits de | posit Rs.5 Lakhs before the' |
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| Registrar, DRAT, Mumbaij today already taken_■, _taking of possession If Petitioners/Appe hearing date. |
itself} if possession is not shall be deferred, till the next llants fail to deposit of Rs.5 |
| Lakhs today i.e. 07.07.2025, the liberty to proceed with in accordanc It is made clear that on fail instalments, the’ Appeal shall stan |
Respondent Institution is at e with law. ure to deposit of either' of. the d rejected. On making such |
| deposit by Petitioners/Appellants, invest the same in a Nationalized further orders are passed. List the case on 23.07.2025, PAM |
Registrar, DRAT, Mumbai is to Bank, from time to time, till for reporting compliance. CHA.RPBRSote, CHENNAI (IN-CHAROE, DRAT, MUMBAI) |
1 issue framed by the court
Whether a deposit of Rs.5.25 Lakhs is required for entertaining the appeal under Section 18(1) of the SARFAESI Act, 2002.
1 provisions across 1 enactments
Petitioners/Appellants
Respondent Institution
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
