DEBT RECOVERY APPELLATE TRIBUNAL-MUMВАІ (SITTING AT -CHENNAI)

I.A. No. 03/2026(WoD)

In Misc. Appeal Dy. No.2056/2025 Dated: 05.01.2026 The matter is taken up for hearing by way of a Praecipe filed by the Petitioners/Appellants 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/Appellants filed S.A. No. 171/2025 challenging the measures taken under the SARFAESI Act, especially the Sale Notice dated 31.07.2025 scheduling the sale on

20.08.2025 and the order dated 05.04.2025 passed by the Learned ASCJ & ACJM-Ahmedabad under Section 14 of the SARFAESI Act and subsequent order passed by ACJM-Ahmedabad dated 01.12.2025 passed below Exhibit 9 and 11 in CRMAJ No. 207/2025, etc.

Earlier, they filed an Appeal before this Tribunal against an order passed in the same SA in Misc. Appeal Dy. No. 1413/2025, wherein as directed by this Tribunal in I.A. No.573/2025(WOD), they made a pre-deposit of

1,05,03,422/-. Thereafter, when the Respondent Bank tried to take possession of the property in pursuance of an order passed under Section 14 of the SARFAESI Act, they again moved an application for stay of further proceedings. Learned Presiding Officer, DRT-I, Ahmedabad passed an order on 18.12.2025 rejecting the wmy interim protection sought. In the said background, this Appeal is filed.

He further submitted that apart from the pre-deposit of Rs. 1,05,03,422/- already made, they also paid a sum of

51 lakhs (*25 lakhs and 26 lakhs) to the Bank on

9.12.2025. They also paid a sum of 69 lakhs to the Bank, as per the order passed by the Hon'ble High Court of Gujarat in R/Special Civil Application No. 17572/2025. Thus, a total sum of ₹2,25,03,422/- was deposited/paid.

Thus, they seek waiver of pre-deposit.

Learned Counsel for the Respondent Bank strongly opposes this application on the ground that earlier S.A. No. 4/2025 was filed only to challenge the Sale Notice dated 05.06.2025. Thereafter, Petitioner/Appellant filed an Undertaking cum Affidavit in SA 171/2025 giving an undertaking to settle the loan due in five instalments, as detailed in the Undertaking cum Affidavit. On the basis of this Undertaking, they also withdrew the S.A. No. 04/2025. They had not followed the Undertaking given, compelling the Bank to proceed further with the SARFAESI Sale. Sale was conducted and against the sale, this S.A. is filed. The property is now sold, and third- party interest is created. Petitioners/Appellants have been dragging the proceedings without making a valid and genuine effort to settle the loan account. Since property is now sold, and third-party interest is created, Petitioners/Appellants are not entitled for waiver of pre-

deposit. He also pointed out that on 07.09.2025, the date fixed for taking physical possession, m Petitioners/Appellants gave an Undertaking that they would vacate the property in two days. However, despite giving such an undertaking, they approached the Hon'ble High Court of Gujarat and proceeded with the litigation.

Learned Counsel for the Respondent Nos. 2 to 5/ Auction Purchasers opposes this application on the ground that earlier S.A. No. 04/2025 filed challenging the Sale Notice dated 03.06.2025 was dismissed as withdrawn. Petitioners/Appellants cannot now again challenge the Sale measures.

Considered the rival submissions and perused the records.

It is seen from the submission of Learned Counsel appearing for the parties and the records produced that Petitioners/Appellants had already filed S.A. No. 04/2025 challenging the Sale Notice dated 03.06.2025. When S.A.

No. 171/2025 is pending, Petitioner/Appellant filed an Undertaking cum Affidavit dated 22.07.2025 undertaking to clear the debt in five instalments and on basis of this Undertaking, they also withdrew the S.A. No. 04/2025. Without honouring the Undertaking they now proceed with objections of the sale