The DRAT disposed of an application seeking refund of a pre-deposit of Rs. 10 lakhs. The Tribunal allowed the application, holding that the amount was not a secured asset and no security interest was created.
Application allowed; amount of Rs. 10 lakhs with accrued interest directed to be refunded by the Registrar.
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.
| V | DEBT RECOVERY APPELLATE TRI BUN AL- MUMBAI (SITTING AT -CHENNAI) |
|---|---|
| Dated: 22.04.2025 1. by the Petitioners/Appellants for Praecipe filed seeking urgent relief. M.A. No. 32/2025 (Refund of Deposit) In (Misc. Appeal Dy. No. 2387/2024-Dismissed) The matter is taken up for hearing by way o'f a |
|
| This Application is filed seeking for refund of 2. pre-deposit of Rs. 10 lakhs. |
|
| Counsel Learned It is the submission of 3. |
|
| Tribunal this Petitioners/Appellants that for |
|
| directed the Petitioners/Appellants to deposit a | |
| for Lakhs as sum of Rs.86 pre-deposit |
|
| bn or before 13.12.2024 and balance amount in two equal instalments of Rs.33 lakhs each, on or before 26.12.2024 and 09.01.2025, respectively. entertaining the Appeal, out of which, Rs.20 Lakhs |
|
| able to Petitioners/Appellants were The 4. |
|
| deposit only Rs. 10 Lakhs and could not pay the |
| balance amount of Rs.76 Lakhs, which resulted |
|---|
| Appeal in Diary No. . in dismissal of Misc. |
| 2387/2024. |
| Learned Counsel for Respondent Bank has 5. reported no objections. |
| In view of the disposal of the Misc. Appeal in 6. Diary No. 2387/2024, this Tribunal is of the view |
| that the Petitioners/Appellants are entitled for refund of this amount because this amount is not a secured asset, no security interest is created and there is no attachment in any proceedings under Section 13(10) of the Act read with Rule 11 of the Security Interest (Enforcement) Rules, 2002. |
| In view of the same, the Application in M.A. 7. |
| Registrar, DRAT,, No. 32 of 2025 is allowed. |
| Mumbai, is directed to refund the amount with accrued interest, if any. MKS CHAIRPERSON. DRAT, CHENNAI (IN-CHARGE, DRAT, MUMBAI) |
1 issue framed by the court
Whether the pre-deposit made by the petitioners is liable to be refunded in the absence of security interest creation or attachment under Section 13(10) of the Act.
2 provisions across 2 enactments
Petitioners/Appellants
Respondent Bank
CHAIRPERSON
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
