Deposit compliance under SARFAESI Act is essential for appeal maintenance; failing to meet requirements can lead to dismissal.

The matter is taken up for hearing by . way of a Praecipe filed by the Petitioners/AppeUantS for seeking Urgent relief. This Application is filed seeking waiver of statutory .deposit required, .Under Section. 18(1) of the: SARFAES1 Act, 2002, for entreating the Appeal.

The' Appeal is filed against the order passed in. LA. No.

1623/2025 in S.A. Nd.81/2025 by Learned Presiding Ofiicer, DRT-III, Mumbai. The aforesaid S.A. was filed challenging the proceedings initiated under SARFAESI Act , 2002 including pre- intimation notice ddaatteedd .06.01.2025 issued by Court Commissioner, Nashik.

Learned Counsel for Petitipners/Appcllants submitted that in an earlier occasion, when possession was sought to be taken, Petitioners/Appellants deposited Rs.3 Lakhs and the Tribunal granted 15 days time for them to submit OTS proposal and if the OTS proposal is accepted, Petitiohers/Appellants v>ere granted three months- time to 'settle the matter with: the Respondent Institution. Accordingly, Rs.3 Lakhs was deposited and submitted OTS; proposal as well, and that OTS proposal dated 17.0'2.2025 was rejected by Respondent Institution. The Respondent Institution again scheduled the possession. When challenged by seekihg stay in LA. Nd. .1623/2025, Learned Presiding Officer directed the Petitidhcrs/Appellahts to make deposit, of Rs.5 Lakhs. Challenging this prdcfj this appeal is filed along with Waiver Application.

In reply, Learned Counsel for Respondent Institution submitted that under the OTS Proposal, Petitioners/Appellants incorporated certain conditions which cannot be accepted by Respondent Institution. Instead of paying the OTS proposal amount of Rs.18 Lakhs in one instalment, the Petitioners/Appellants sought to pay in six instalments at Rs.3 Lakhs each, and also sought Rs.3 lakhs to be kept in no-lien account. These conditions are not acceptable to the Respondent Institution, and therefore-, OTS proposal was rejected, on these grounds, and also on the ground that the OTS amount offered was very Ipw.

Considered the rival submissions and perused the records. As per the impugned order, the amount due on the date of passing of order was Rs.21 Lakhs. Even bare minimum is fixed at 25% of the amount due for entertaining the Appeal, the Petitioners/Appellants have to deposit Rs.5.25 Lakhs. Therefore, this Tribunal is of the view directing the Petitioners/Appellants to deposit Rs.5.25 Lakhs, in two instalments, would meet the requirement under Section 18 (1) of SARFAES1 Act, 2002, for entertaining, the Appeal.

At this juncture, Learned Counsel for Petitioners/Appellant shows through Video Conferencing that he is ready with a Demand Draft of Rs.5 Lakhs today.

Therefore, the Petitioners/Appellants are directed to deposit Rs.5 Lakhs with the Registrar, DRAT, Mumbai, today itself, i.e. 07.07.2025 and the remaining amount of Rs.25,000/-

shall be deposited on or before 21.07.2025.

The Registrar, DRAT, Mumbai, is directed to receive the Demand Draft of Rs.5 Lakhs deposited by Petitioners/Appellants.

. (Wl If Petitioners/Appcilarits deposit Rs.5 Lakhs before the'

Registrar, DRAT, Mumbaij today itself} if possession is not already taken■, taking of possession shall be deferred, till the next hearing date. If Petitioners/Appellants fail to deposit of Rs.5 Lakhs today i.e. 07.07.2025, the Respondent Institution is at liberty to proceed with in accordance with law.

It is made clear that on failure to deposit of either' of. the instalments, the’ Appeal shall stand rejected. On making such deposit by Petitioners/Appellants, Registrar, DRAT, Mumbai is to invest the same in a Nationalized Bank, from time to time, till further orders are passed.