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IN THE HIGH COURT AT CALCUTTA
OM NARAYAN RAI
Jainco Projects (India) Limited – Appellant
Versus
UCO Bank – Respondent
JUDGMENT :
OM NARAYAN RAI, J.
1. This revisional application under Article 227 of the Constitution of India is directed against an order dated July 11, 2025 passed by the learned Debts Recovery Appellate Tribunal (hereafter “DRAT”) at Kolkata in Misc. Appeal Diary No. 494 of 2025. By the said order the petitioner’s application praying for waiver of the pre-deposit required to be made under Section 18(1) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereafter “SARFAESI Act, 2002”) was disposed of by directing the petitioner to make a pre-deposit of 50 per cent of Rs. 4.95 crore which is stated to be debt due as on the date of the order.
2. The petitioner had availed of certain credit facilities from the opposite party no. 1. Upon the petitioner defaulting on repayment of the said credit facilities, the petitioner’s loan account was classified as a Non-Performing Asset. Thereafter, the opposite party no. 2 initiated action under SARFAESI Act, 2002. Assailing such action of the opposite party nos. 1 and 2 the petitioner has approached the Debts Recovery Tribunal, Kolkata (hereafter “DRAT”) by filing SA 109 of 2019 (hereafter
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 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....
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 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 – Any waiver of pre-deposit to entire extent would be against statutory provisions and not sustainable in law.
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