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SABYASACHI BHATTACHARYYA
Archana Nirman Pvt. Ltd. – Appellant
Versus
IIFL Home finance Limited – Respondent
JUDGMENT :
SABYASACHI BHATTACHARYYA, J.
1. The short question which has arisen for consideration is whether an appellant under Section 18 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as “the SARFAESI Act”) is mandatorily required to deposit the pre-requisite of 50 per cent (reducible up to 25 per cent) of payable debt even when the challenge is against an interlocutory order not touching the merits of the case and not deciding the rights of parties.
2. The writ petitioners are borrowers against whom SARFAESI action has been taken. In the said proceeding, a subsequent purchaser from the auction purchaser was impleaded, against which order the petitioners sought to prefer an appeal. The Appellate Tribunal directed the petitioners to deposit the pre-requisite 50 per cent and fixed a time-limit for the same. Having not done so, the appellants' appeal was dismissed on such ground.
3. Learned counsel appearing for the petitioners argues that the provision of making prior deposit would be rendered absurd and oppressive in the event an aggrieved person has to pay such amount at every stage of the proceeding
The requirement of pre-deposit under Section 18 of the SARFAESI Act is mandatory and serves as a deterrent to frivolous appeals, with provisions for reduction in exceptional cases.
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....
The main legal point established in the judgment is that the provision relating to pre-deposit under Section 18 of the SARFAESI Act applies to both interlocutory and main application orders, and ther....
The requirement to pre-deposit up to 50% of the debt due to prefer an appeal under Section 18 of the Act, 2002 against any order passed by the Tribunal under Section 17 is mandatory and applicable to....
Appeal – Quantum of pre-deposit cannot be more than apparent subject matter of appeal.Case Referred:
The statutory remedy of appeal under the SARFAESI Act can be invoked only upon making a certain pre-deposit, as per the clear language of Section 18, and the High Court cannot give directions contrar....
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