The court established the requirement and schedule for a statutory pre-deposit (40% of the loan amount) as a condition for maintaining an appeal against SARFAESI proceedings, allowing for the adjustment of previously deposited sums.

The matter is taken up for hearing by way of praecipe filed by the appellant for seeking urgent relief.

2. The present Appeal challenges the order dated 07/11/2025 passed by the Learned Presiding Officer, DRT Nagpur, in I.A. No. 1631/2025. The Respondent Bank was issued a demand notice dated 11/03/2025 under Section 13(2) of the SARFAESI Act demanding ₹2,20,01,542.02/- as on 28/02/2025. Thereafter, a possession notice dated 28/10/2025 was issued and physical possession of the secured asset has already been taken on 07/11/2025. The appellants have also challenged the order dated 28/07/2025 passed by the Learned District Magistrate, Nagpur under Section 14 of the SARFAESI Act .

3. The Learned Counsel for Appellants submits that the loan sanctioned was ₹2,05,00,000/- and not ₹2,15,00,000/- as alleged by the Respondent Bank, and that after issuance of the Section 13(2) notice, they have deposited ₹15,00,000/- on 15/09/2025. They further submit that due to losses in their liquor business and an increase in excise duty, they are facing financial hardship and therefore seek a reduction of the statutory pre-deposit.

4. The Learned Counsel for Appellants would submit that they deposited ₹15 lakhs on 15/09/2025, which is fairly admitted by the Learned Counsel for Respondent Bank.

5. The Respondent Bank has vehemently opposed the application.

6. Considered the submissions of both sides and the material placed on record.

7. The Appellants are directed to deposit 40% of ₹2,05,00,000/- as pre-deposit, which is ₹82,00,000/-, after giving an adjustment to the amount of ₹15,00,000/already deposited. The 1st instalment of ₹20,50,000/- shall be deposited on or before 13.03.2026, the 2nd instalment of ₹20,50,000/- shall be deposited on or before 27.03.2026, the 3rd instalment of ₹20,50,000/- shall be deposited on or before 10.04.20226 and the 4th instalment of ₹20,50,000/- shall be deposited on or before 24.04.2026.

8. In case of default in depositing any instalments within the stipulated time, the Appeal shall stand dismissed automatically without further reference to this Tribunal.

9. The amount shall be deposited in the form of a Demand Draft with the Registrar of this Appellate Tribunal.

10. As and when the said amounts are deposited, the same shall be invested in term deposits in the name of Registrar, DRAT, Mumbai with any nationalised Bank, initially for 13 months, and thereafter to be renewed periodically.

11. With this observation, the I.A. is disposed of. The Respondent Bank is at liberty to file a reply to the grounds of the Appeal with an advance copy to other sides.

12. List the case on 28.04.2026 for reporting compliance.