The Tribunal mandates a pre-deposit for entertaining an appeal under the SARFAESI Act, ensuring compliance while highlighting inconsistencies in the outstanding dues claimed by the bank.

In Misc. Appeal Dy. No. 648/2023 Dated: 18.07.2025 The matter is taken up for hearing by way of a Praecipe filed by the Petitioners/Appellants for seeking urgent relief. This Application is filed seeking waiver of statutory deposit required under Section 18(1) of the SARFAESI Act, 2002 , for entertaining the Appeal.

Learned Counsel for Petitioners/Appellants submitted that the Petitioners/Appellant availed loan of Rs.40 Lakhs towards housing loan facility. When they were regularly paying the Equated Monthly Instalments (EMIs), due to close of thier business, there was failure in paying EMIs regularly. However, there is no date of classification of loan account as NPA was given in the Demand Notice. No break up details of amount due such as principal and interest is given. When Respondent Bank tried to take possession by obtaining order from Learned Civil Judge, Senior Division & ACJM, Nagpur, on 18.07.2022, on proceeding under Section 14 of the SARFAESI Act, 2002 , they filed S.A. No. 301/2022 challenging the orders passed under Section 14 of the SARFAESI Act, 2002 . They also filed I.A. No. 817/2023 seeking stay of proceedings. Since I.A. was dismissed, this Appeal is filed along with Waiver Application.

It is further submitted that in Demand Notice dated

14.06.2017, the amount due was shown as Rs.35,59,266/- as on 31.05.2017. The same amount is reflected in the Possession Notice as due as on 01.07.2017. After the receipt of Demand Notice, the Petitioners/Appellants had paid a sum'of Rs.30.40 Lakhs to the Bank. Not only that, a sum of Rs.12 Lakhs was also paid into the Bank as per the direction of DRT. Thus, the Petitioners/Appellants had paid totally a sum of Rs.42.40 Lakhs. As per letter dated 05.01.2023 given by the Bank towards settlement of dues, it is clearly stated that outstanding balance as on 05.01.2023 was Rs.24.64 Lakhs. Even in the Advance Notice for Peaceful Possession dated 18.01.2023, it is seen that the balance amount shown as due was Rs.24,80,989/-. In view of substantial payment made by Petitioners/Appellants towards loan due, the Petitioners/Appellants seek waiver of pre-deposit.

He further submitted that the mortgage is defective and orders under Section 14 of the SARFAESI Act, 2002 , was obtained against dead persons, more specifically, 2nd Respondent Non-Applicant, Shree Surendrakumar Khemchand Dua, who is the co-borrower cum mortgagor and 4th Respondent Non- Applicant, Smt. Pushpa Surendrakumar Dua, died on 23.09.2019 and 12.12.2020 respectively. Only after their death, Misc. Criminal Application No. 1054/2022 under Section 14 of the SARFAESI Act, 2002 , was filed without properly impleading the LRs of deceased persons. Mr. Rajendrakumar Surendrakumar Dua is not a mortgagor, but his father Surendrakumar Dua was alone mortgagor, executed mortgage on 13.01.2015, but it was wrongly claimed under Section 14 Application that the mortgage was executed by Rajendrakumar Surendrakumar Dua, Surendrakumar Khemchand Dua, Sonika Rajendrakumar Dua and Pushpa Surendrakumar Dua, on 15.012015. It is factually incorrect. The order under Section 14 of the SARFAESI Act, 2002 , was obtained by placing wrong and inaccurate facts and against the dead persons. Learned Counsel for Petitioners/Appellants further submitted that the Respondent Bank scheduled to take possession on 25.07.2025.

Learned Counsel for the Respondent Bank submitted that as on 30.11.2024, the amount outstanding is Rs.35,11,085.92p. All the issues raised by Petitioners/Appellants can only be agitated in the main Appeal.

Considered the rival submissions and perused the records. This Tribunal finds that there is dispute with regard to payments of Rs.42.40 Lakhs made by Petitioners/Appellants towards loan after issuance of 13(2) Demand Notice. When it is claimed in the counter that a sum of Rs.35,11,085.92p was due as on 30.11.2024, but in the Settlement of Term Loan dated 05.01.2023, the amount due claimed as on 05.01.2023 is Rs.24.64 Lakhs and in the Advance