The Tribunal allowed the appeal, holding that no predeposit under Section 30A of the RDB Act is required where the creditor has issued a certificate of no dues, rendering the debt payable amount zero.
The appeal was allowed and it is directed that the DRT earnestly attempt to dispose of Appeal No. 02 of 2023 expeditiously.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present: Mr Justice Ashok Menon, Chairperson
Misc. Appeal No. 31/2024
Between
Hashmi Sayed Nisar Ahmed Sayed Mirtuza … Appellant/s
V/s.
State Bank of India & Ors.
…Respondent/s
Mr R. P. Adgaonkar, Advocate for Appellant.
Ms Darshana Kambli, i/b Mr P. B. Gujar, Advocate for Respondent No. 1.
Mr Kushal Sawant, i/b Mr Ismail Nashikwala, Advocate for Respondents Nos. 2 and 3.
-: Order dated: 11/02/2025:-
The appellant was given an exemption from payment of predeposit under Sec. 20 considering the fact that the bank has already issued a certificate of no dues. Therefore, there is no debt payable. The same principle would apply to the pre-deposit made under Sec. 30A of the Recovery of Debts and Bankruptcy Act, 1993 (“RDB Act” for short) as well.
However, in the impugned order, the Ld. Presiding Officer had directed the payment of ₹68,85,656/- which was due from the appellant but the Ld. Presiding Officer has not delved deep into the fact that there are no outstanding dues and Sec. 30A very clearly states that the amount to be paid on the debt due is determined by the Tribunal. If there is no amount due, payment of pre-deposit cannot be insisted upon. Given that, the appeal is allowed and it is directed that the DRT shall earnestly attempt to dispose of Appeal No. 02 of 2023 as expeditiously as possible.
mks-16
1
2 issues framed by the court
Whether predeposit is payable under Section 30A of the RDB Act when no outstanding dues exist and a certificate of no dues has been issued.
Whether the direction to pay predeposit without considering the absence of debt was erroneous.
2 provisions across 1 enactments
Hashmi Sayed Nisar Ahmed Sayed Mirtuza
State Bank of India
Ashok Menon
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
