In an appeal before the Debt Recovery Appellate Tribunal, Mumbai, the Chairperson allowed withdrawal of a pre-deposit of Rs. 50 lakhs. The court held the deposit was not secured debt nor subject to lien, as no order had been passed to attach it.
Refund of Rs.50.00 lakhs with accrued interest to the petitioners/appellants.
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DEBT RECOVERY-APPELLATE TRIBUNAL MU.MBAI
Misc. Application No.2572025 (Withdrawal of pfe-deposit) In Misc. Appeal DY.NO;150/2023
Dated :-15;4.2025
Id. Counsel for both sides are present.In VC.
This application is filed by petitiohers/appellantS for withdrawal of pre-deposit with accrued interest; if: any, which was deposited towards pre-deposit in Misc. Appeal Dy.Np.150/2023.
Ld. Counsel for petitioners submit that as per the order passed by Ld. Chairperson, DRAT, Mumbai in IA 70/2023 (waiver application), petitioners made Rs.50.00 lakhs against Rs.2.50 crores towards: pre deposit for entertaining the appeal. It is submitted that petitioners filed Writ Petition No.3262/2024 against this orde'r before Hon'ble High Court .of Mumbai, which was dismissed on 15.1:2025. Against the dismissal order, petitioners moved SLP Dy.No.815i/2025 before Hon'ble Supreme Court of’India, which was also, ended in. dismissal. In the said circumstances, this application.is filed for withdrawal of Rs.50.00 lakhs deposited by the petitioners.
Ld. Counsel for responderit.bahk strongly opposed this application on the ground that still petitioners owe the bank a. sum of Rs.'2,33;84,531.77p as .oh ,14.10.2023 with further interest and'bank would file an.application for attaching the amount deposited by the petitioners.
I have considered the rival submissions and perused the records.
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Admittedly, against the order passed to deposit Rs.2.50 crores, petitioners deposited only Rs.50.00 lakhs. Challenge was made to this order passed in waiver application before Hon'ble High Court of Mumbai and Hon'ble Supreme Court of India, which ended in dismissal.
Due to non compliance of order passed in waiver application, Misc. Appeal Dy.No.150/2023 was rejected on 19.6.2024. Pre-deposit made by the petitioners is not a secured debt nor there is security interest created on this amount. There is ho order passed so far under Section 13(10) of SARFAESt Act for attaching this amount by any judicial proceedings. In the said circumstances, this Tribunal cannot deny refund of the amount deposited by the petitioners, if any.
In view of this matter, this Misc. Application No.25/2025 is allowed as prayed for.
Registry is directed to refund the amount of Rs.50.00 lakhs with accrued interest, if any to the petitioners/appellants.
CHAIRPERSON, Dr'It^CHeLnAI (IN-CHARGE, DRAT, MUMBAI)
•SN
1 issue framed by the court
Whether pre-deposit made before the Debt Recovery Tribunal can be withdrawn pending judicial proceedings challenging the underlying order.
Petitioners/Appellants
Respondent Bank
Chitranjan R. Agarwal
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
