Appellant sought waiver of pre-deposit under the SARFAESI Act. Court rejected waiver, directing 25% deposit of the revised dues. Appeal pending compliance listed for future date.
Deposit of Rs.27,09,361/- in two instalments; possession deferred subject to first instalment.
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DEBT RECOVERY APPELLATE TRIBUNAL-MUMBAI (SITTING AT -CHENNAI) -I.A. No. 439/2025 (WoD) In Misc. Appeal Dy. No. 1093/2025 Dated: 24.07.2025 i I The matter is taken up for hearing by way of a Praecipe L filed by the Petitioner/Appellant for seeking urgent relief. i I This Application is filed seeking waiver of statutory deposit required under Section 18(1) of the SARFAESI Act, 2002, for entertaining the Appeal. Learned Counsel for Petitioncr/Appellant submitted that Petitioner/Appellant filed S.A. No. 36/2025 challenging the t proceeding initiated under Section 14 of the SARFAESI Act, 2002 and orders passed thereon, and also measures initiated under SARFAESI Act by issuance of 13(2) Demand Notice etc. It is his submission that Learned Presiding Officer} DRT-III, Mumbai passed order on 03.07.2025 directing the Petitioner/Appellant to deposit Rs.10 Lakhs on 03.07.2025 before 5 p.m., another sum of Rs. 10 Lakhs on of before 30.07.2025, failing compliance of these directions, Respondent Institution was given liberty to take action as per SARFAESI Act. Accordingly, I.A. No. 2020/2025 was disposed of. It is further submitted that on 21.01.2025, Learned 1 Presiding Officer passed orders directing that the insurance amount due to Petitioncr/Appellant on the death of her husband to be credited to the loan account, apart from the Petitioner/Appellant depositing Rs.20 Lakhs; The Petitioncr/Appellant should approach Respondent Institution for settlement of the claim. He submitted that in terms of this direction, insurance amount was given credit to loan account and i Petitioner/Appellant has also paid Rs.20 Lakhs. Despite that, ! Respondent Institution proceeded with issuance of fresh Possession Notice on 13.06.2025 and thus he seeks waiver.
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In reply to his submission, learned Counsel for Respondent Institution submitted that there was some shortage in insurance claim, that apart, there was a specific direction that the Petitioner/Appellant. should approach to Respondent Institution for settlement of the claim. However, the Petitioner/Appellant has not approached the Respondent Institution for settling the claim that necessitated the Respondent Institution to issue a fresh Possession Notice for taking possession of the property. As on today, the amount due is Rs. 1,08,37,444/-. Considered the rival submissions and perused the records. The contentions raised by the parties with regard to the shortfall of insurance claim and other issues will be considered only in main Appeal. It is seen from the submission of Learned Counsel for Respondent Institution that the amount due as on today is Rs.1,08,37,444/-. As pre-deposit is mandatoiy, directing the Petitioner/Appellant to deposit 25% of Rs. 1,08,37,444/would meet the requirement under Section 18 (1) of SARFAESI Act, 2002, for entertaining the Appeal. Admittedly, 25% of Rs, 1,08,37,444/comes to Rs.27,09,361/-. Therefore, Petitioner/Appellant shall deposit Rs.27,09,361/- in two equal instalments, 1« instalment of Rs.13,54,680.50p shall be deposited oh or before 11 a.m. tomorrow i.e. 25.07.2025 and 2^ instalment of Rs. 13,54,680.50p shall be deposited on or before 21.08.2025. If Petitioner/Appellant deposits the 1B‘ instalment of Rs.13,54,680.50p on or before 11 a.m. tomorrow i.e. 25.07.2025, taking of possession shall 'he deferred till next hearing date. If the Petitioner/Appellant fails comply with the first instalment, the
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| Respondent Institution is at | liberty to proceed further in |
|---|---|
| accordance with law. | |
| It is made .clear that on | failure to deposit of either of the |
| instalments, the Appeal shall | stand rejected. On making such |
| deposit by Pctitioner/Appellant | , Registrar, DRAT, Mumbai is to |
| invest the same in a Nationali | zed Bank, from time to time, till |
| further orders are passed. List the case on 26.08.20 |
25, for reporting compliance. |
| CHAIRPERSON, DRAT, CHENNAI (IN-CHARCE, DRAT, MUMDAIJ |
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| PAM |
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2 issues framed by the court
Whether the statutory pre-deposit requirement under Section 18(1) of the SARFAESI Act, 2002 can be waived or deferred for entertaining the appeal.
Whether the amount due should be considered based on the updated figure as on the date of the order for calculating the 25% pre-deposit.
1 provisions across 1 enactments
Petitioner/Appellant
Respondent Institution
CHAIRPERSON, DRAT, CHENNAI
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
