The court establishes the necessity of a statutory deposit under the SARFAESI Act for an appeal to be entertained while considering prior deposits and auction circumstances.

I DEBT RECOVERY APPELLATE TRIBUNAL-MUMBAI (SITTING AT -CHENNAI)

• I LA. No. 309/2025 (WoD)

In Regular Appeal Dy No.592/2025 Dated: 24.07.2025 This Application is filed seeking waiver of statutory deposit required under Section 18(1) of the SARFAESI Act, 2002 , for entertaining the Appeal.

Learned Senior Counsel appearing for Petitioners/Appellants submitted that the Petitioners/Appellants filed S.A. No> 15/2024 challenging the order passed under Section 14 of the SARFAESI Act, 2002 , on 18.12.2023 by Learned District Magistrate, Pune, Auction Sale Notice dated 22.10.2024 and injunction restraining Bank from confirming the sale and issuance Sale Certificate. This S.A. had been dismissed after contest, on 05.04.2025. Therefore, this Regular Appeal is filed along with Waiver Application.

It is his submission that, the property worth of Rs. 11 Crores was sold for Rs.6,08,50,000/-. Objection sent to 13(2)

I Demand Notice was not properly considered. Certain payments made were not properly given credit and other grounds. It is his further submission that in connected proceedings in Misc. Appeal Dy. No< 2468/2024, the Petitioners/Appellants made deposit 25% . of debt due as reflected in the Auction Sale Notice as initial deposit for entertaining the Appeal under Section 18(1] of SARFAESI Act, 2002 . The Said Appeal was dismissed, as i infructuous. Therefore, Learned Sr. Counsel for ♦ t Petitioners/Appellants prays that the amount already deposited in Misc. Appeal Dy. No. 2468/2024, may be used as pre-deposit in this Appeal.

teamed Counsel for Respondent Bank opposes this Waiver Application and submits that mandatory 50% of the amount of debt due has to be deposited for entertaining the Appeal.

Learned Counsel for Auction Purchaser submitted that the Auction Purchaser paid the sale consideration, Sale Certificate was also registered in the name of Auction Purchasers. Thus, she opposes the waiver of pre-deposit.

Considered the rival submissions and perused the records. It is seen from the submission made by the Learned J Counsel for the parties that the property had already been sold. 3rd party interest had been credited. As per the Sale Notice dated 22.10.2024, the amount due was Rs.4,03,00,155.65p due as on 13.11.2024. The property was sold for Rs.6,08,50,000/-. It is the submission of Learned Counsel for Respondent Bank that there is balance sale consideration still lying with the Bank.

In the said circumstances, and that already 25% of the amount claimed in the Sale Notice was deposited and lying with DRAT, Mumbai, in the connected Appeal in Misc. Appeal Dy. 2468/2024, and now this sale is held and Sale Certificate is issued, and this Appeal challenges the sale and Sale Notice also, f pre-deposit has to be made. Tn the said circumstances, directing the Petitioners/Appellants to deposit 30% of Rs.4,03,00,155.65p would meet the requirement under Section 18 {]) of SARFAESI Act, 2002 , for entertaining the Appeal.

Admittedly, 30% of Rs.4,03,00,155.65p comes to Rs. 1,20,90,046.69 (Rounded off to Rs. 1,20,90,047/-). Therefore, the' Petitioners/Appell ants are directed to deposit Rs. lr2O,9O,047/-, oh dr before 21.08:2025.

The Petitiohcrs/Appcllants are-permitted-to withdraw the amount already deposited, which is lying with DRAT, Mumbai; with accrued interest1 and use that amount for making this deposit, within the period of four weeks, i.e, on or before

2.1.08.5025;

It is made clear that on failure to deposit of the above amount, 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.

List the case on 23.09.2025, for reporting compliance.