DEBT RECOVERY APPELLATE TRIBUNAL-

MUMBAI (SITTING AT .-CHENNAI) LA. No. .242/2025 (WoD)

In Misc. Appeal Dy No. 594/2025 Dated: 23.04.2025.

The matter is taken up for hearing by way of i a Praecipe filed by the Petitioners/Appellants for i i seeking urgent relief. I l I Mr. V. Chandrasekaran and Mr. S. Vignesh I Advocates, undertake to file Vakalat for r Respondent Bank.

This Application is filed seeking waiver of statutory deposit required under Section 18(1) df the SARFFAESI Act, 2002, for entertaining the Appeal. i j It is the submission of Learned Counsel for Petitioners/Appellants that sale is scheduled tomorrow. i.e. 24.04.2025. Therefore, the Petitioners / Appellants moved Preponement Application before DRT-H, Ahmedabad, for earlier

1^7 hearing. Learned Presiding Officer heard immediately and passed order on 04.04.2025 on Preponement Application in S.A. No. 40/2025 and preponed the case from 17.06.2025 to 24.04.2025. When the sale is scheduled on 24.04.2025 unless the sale is stopped the Petitioners/Appellant will be seriously prejudiced. In the said circumstances, this Appeal is filed along with Waiver Application.

Learned Counsel for Petitioners/Appellant submitted that the Petitioner/Appellants are only guarantors and they arc not the beneficiary of the Joan amount.

Learned Counsel for the Respondent Bank opposed the Waiver Application on the ground that the Petitioners/Appellant were extended two loans; one the Overdraft Facility of Rs. 1.15 Crores and another Term Loan Facility of Rs.36 Lakhs. In all, the Petitioners/Appellants paid only Rs. 1 Lakh on 13.06.2024 towards the Overdraft Facility and Rs.4,102.21p towards Term Loan Facility. As per impugned Sale Notice, the amount demanded is Rs.l,61,37,336.79p. S.A. • was filed only challenging the Possession Notice. However, the I I Petitioners/Appellants continued to state that Amendment Application was filed for incorporating the prayer to challenge the impugned Sale Notice as well.

In the said circumstances stated by Learned Counsel for the parties and that no third party interest has been created so far, and taking into consideration that the Petitioners/Appellants are only guarantors and the Petitioners/Appellants expressed their willingness to settle the loan with the Bank, this Tribunal is of the view directing the Petitioners/Appellants to deposit 25% of the amount mentioned in the Sale Notice, in two instalments, would meet the requirement under Section 18(1) of the SARFAESI Act, 2002, for entertaining the Appeal.

Admittedly, 25% of Rs.1,61,37,336.79p (rounded off to Rs.1,61,37,337/-), comes to Rs.40,34,334/..

Therefore, the Petitioners/Appellants shall deposit Rs.40,34,334/-, in two instalments, the t first instalment Rs. 15 Lakhs to- be deposit before- 11.00 AM tomorrow, i.e. 24.04.2025 and the second instalment of Rs.25',34,334/- to be J deposited on or before 22.05.2025. I I If such deposit is made, the sale shall be i deferred till next date of hearing. Failing to comply with the conditions as stated above, the Respondent Bank is at liberty to proceed with the sale, in the manner known to law.

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

i i Post the case on 26.05.2025 for reporting compliance.

I I CHAIRPERSON, DRAT, CHENNAI (IN-CHARGE, DRAT, MUMBAI)

MKS I