The requirement for mandatory pre-deposit under the SARFAESI Act cannot be waived; failure to comply invalidates any appeals against recovery actions.

JUDGMENT :

Anil K. Narendran, J.

The respondent in W.P.(C)No.5937 of 2026 is before this Court in this writ appeal, invoking the provisions under Section 5 (i) of the Kerala High Court Act , 1958, challenging the interim orders dated 16.02.2026 and 05.03.2026 of the learned Single Judge in that writ petition. The respondents herein-petitioners filed the said writ petition, invoking the  extraordinary jurisdiction of this Court under Article 226 of the Constitution of India , seeking the following relief;

“1) Issue appropriate orders on writ petition, order or direction by ordering stay of further proceedings under the SARFAESI Act, including proceedings initiated under Section 14 , as per the order of Chief Judicial Magistrate Court, Thiruvananthapuram in M.C.No.775 of 2023 against the petitioners and the properties, until the time Appeal vide Diary No.426/2026  filed before Debts Recovery Appellate Tribunal, Chennai, as per Ext.P8, is disposed of after hearing the matter.”

2. Going by the averments in the writ petition, the petitioners availed two housing loans for Rs.20,00,000/- each from the Peroorkada Branch of Union Bank of India on 08.08.2017 and 23.12.2021. On account of the default in repayment, the loan accounts were classified as Non-performing Asset (NPA) on 21.02.2023 and the Bank initiated recovery measures under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ( SARFAESI Act ). The said proceedings were under challenge before this Court in various writ petitions filed under Article 226 of the Constitution of India , an original petition filed under Article 227 of the and also in securitisation applications filed before the Debts Recovery Tribunal-2, Ernakulam, under Section 17 of the SARFAESI Act . In order to take physical possession of the secured asset, the Bank initiated proceedings before the Chief Judicial Magistrate Court, Thiruvananthapuram, under Section 14 of the SARFAESI Act , as M.C.No.775 of 2023. S.A.No.614 of 2023 filed by the petitioners under Section 17 of the SARFAESI Act , challenging the securitisation proceedings initiated by the Bank, ended in dismissal by Ext.P1 order dated 27.05.2025 of the Debts Recovery Tribunal-2, Ernakulam with a cost of Rs.10,000/- to the Bank. Challenging Ext.P1 order in S.A.No.614 of 2023, the petitioners filed an appeal before the Debts Recovery Appellate Tribunal, Chennai, invoking the provisions under Section 18(1) of the SARFAESI Act , as evidenced by Ext.P8 case filing receipt dated 12.02.2026 issued from the office of the Debts Recovery Appellate Tribunal. On the very next day, i.e., on 13.02.2026, the petitioners have chosen to invoke the writ jurisdiction of this Court under Article 226 of the , by filing W.P.(C)No.5937 of 2026, seeking the aforesaid relief.

3. In W.P.(C)No.5937 of 2026, which was filed on 13.02.2026, the respondent Bank filed a counter affidavit dated 16.02.2026, opposing the relief sought for, producing therewith Exts.R1A to R1L documents. The counter affidavit was presented on 16.02.2026.

4. On 16.02.2026, when W.P.(C)No.5937 of 2026 came up for admission, the learned Single Judge passed an interim order, which reads thus;

“The learned counsel for the petitioners states that they have deposited an amount of Rs.50,000/- (Rupees Fifty thousand only) with the respondent Bank today.

2. In view of the afore submission, the learned counsel for the respondent Bank to get instructions.

There will be an interim stay of all further proceedings against the petitioners for a period of two weeks.”

5. On 05.03.2026, when th