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C. JAYACHANDRAN
Glenny C. J. – Appellant
Versus
Authorised Officer – Respondent
JUDGMENT
The petitioners approached this Court challenging Ext.P12 Order of the Debt Recovery Appellate Tribunal, Chennai, which mandated them to pay 40% of the debt due, as a pre-deposit to entertain the appeal preferred by the petitioners before the said Appellate Tribunal, which is numbered as AIR (S.A.) No.1111/2025.
2. Learned counsel for the petitioners would submit that for realization of the amount due from the petitioners, one among the properties offered as security was sold in auction for a price of Rs.3.39 crores. It was pointed out that, going by Section 18 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act), discretion has been granted to the Appellate Authority to direct a pre-deposit ranging from 25% up to 50% of the debt due. In the instant case, no reason, whatsoever, has been stated in Ext.P12 as to why 40% has been fixed, is the contention raised by the learned counsel for the petitioners. Learned counsel would also point out that the subject matter of appeal is the auction sale made in respect of the petitioners’ property for a consideration of Rs.3.39 crores, and therefore, a direction to pay an
Appeal – Quantum of pre-deposit cannot be more than apparent subject matter of appeal.Case Referred:
The amount paid by the auction purchaser cannot be adjusted against the debt due for the purpose of calculating the amount of pre-deposit, as per the settled legal principle established by the Suprem....
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....
SARFAESI Act Section 18(1) mandates 50% pre-deposit of debt as claimed by secured creditor if not quantified by DRT, reducible to 25%.
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....
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....
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....
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