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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
A.S. Chandurkar, M.M. Sathaye
Prime Downtown Estates Pvt Ltd. – Appellant
Versus
Omkara Assets Reconstruction Company Pvt. Ltd. – Respondent
JUDGMENT :
M.M. Sathaye, J.
1. Rule. Rule made returnable forthwith. Learned counsel for Respondents waive service. Taken up for final disposal by consent of the learned counsel for the parties.
2. In this Judgment, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is referred to as ‘SARFAESI Act’. The Recovery of Debts and Bankruptcy Act, 1993 is referred to as ‘RDB Act’. Debts Recovery Tribunal is referred to as ‘DRT’ and Debts Recovery Appellate Tribunal is referred to as ‘DRAT’. Securitisation Application is referred to as ‘SA’, Interim Application is referred to as ‘IA’. Non Performing Asset is referred to as ‘NPA’.
3. The Petitioner is challenging the order dated 30.01.2025 passed in I.A. No.118 of 2022 in Misc. Appeal No. 40 of 2022 passed by DRAT- Mumbai. By the said impugned order, the DRAT has directed the Petitioner at a pre-deposit stage under Section 18 of the SARFAESI Act to deposit an amount of Rs.248,45,08,646/- in three equal installments as a condition for entertaining the appeal against the order dated 22.07.2021 passed in I.A. Nos.429 & 578 of 2021 in S.A No.46 of 2021 by DRT-II, Mumbai. The impugned order is passed
A mortgagor is included in the definition of borrower under the SARFAESI Act, and the pre-deposit amount must consider all relevant communications and documents.
Non-borrowers cannot be subjected to pre-deposit requirements under Section 18 of the SARFAESI Act, confirming strict adherence to statutory definitions.
The obligation to make a pre-deposit under the SARFAESI Act is strictly on the borrower, and amounts paid by others cannot be appropriated towards this requirement unless the borrower accepts the sal....
Appeal – Requirement of statutory pre-deposit – In a case where borrower challenges auction sale, thereafter it will not be open for borrower to pray to use sale proceeds received from sale of secure....
The court upheld the DRAT's order denying waiver of pre-deposit under the SARFAESI Act, emphasizing the need for a prima facie case and clarifying that financial hardship is not determinative.
Pre-deposit under Section 18 of the SARFAESI Act is a mandatory requirement for maintaining an appeal before the Appellate Tribunal, and it cannot be completely waived even in the face of financial h....
Point of law: High Court has no jurisdiction to entertain writ petitions under Article 226 of the Constitution of India, relating to matters coming under the purview of SARFAESI Act, 2002, where a st....
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