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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
R.I.CHAGLA, FARHAN P.DUBASH
Pegasus Assets Reconstruction Company Limited – Appellant
Versus
Pegasus Assets Reconstruction Company Limited – Respondent
| Table of Content |
|---|
| 1. petitioner's role as developer and refund details. (Para 4) |
| 2. arguments about borrower's definition and pre-deposit. (Para 6 , 7 , 8 , 9 , 10 , 11) |
| 3. respondent's opposition based on noc. (Para 14) |
| 4. court's interpretation of section 18(1) of the sarfaesi act. (Para 15 , 16 , 17 , 18 , 19) |
| 5. court's order to quash drat's pre-deposit requirement. (Para 21) |
ORDER :
1. Rule. Rule made returnable forthwith. Heard by consent of parties.
2. By this Writ Petition, the Petitioner is impugning the orders dated 25th July 2025 and 25th June 2025 passed by the Debt Recovery Appellate Tribunal (“DRAT”) in Misc. Appeal No. 830 of 2025 and has sought for setting aside of the same.
3. By the 1st impugned order of the DRAT dated 25th June, 2025, the DRAT has directed the Petitioner, despite observing that the Petitioner is neither a borrower nor guarantor, to deposit 25% of the amount demanded by the Respondent No. 1 in order to meet the requirement under Section 18(1) of the SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT , 2002 (“SARFAESI Act”) for entertaining the appeal. By the 2nd impugned order of DRAT dated 25th July, 2025, the M
Non-borrowers cannot be subjected to pre-deposit requirements under Section 18 of the SARFAESI Act, confirming strict adherence to statutory definitions.
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....
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....
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.
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....
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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