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

I.A. No. 323/2025 ((WoD)

In Regular Appeal Dy. No. 803/2025 Dated: 15.12.2025 The 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 the Petitioners/Appellants submitted that the Petitioners/Appellants filed S.A. No. 417/2022 challenging the measures taken under the SARFAESI Act, including the Demand Notice dated 02.11.2019, Symbolic Possession taken by the Authorised Officer on

29.01.2020, order passed by the Learned District Magistrate Kutch-Bhuj under Section 14 of the SARFAESI Act on 28.02.2022 and the E- Auction Sale Notice dated 13.05.2022 scheduling the sale on 31.05.2022 and for other relief. This S.A. was dismissed on 16.05.2025. Therefore, Petitioners/Appellants filed this Appeal along with Waiver Application.

She further submitted that 13 (2) Demand Notice dated 02.11.2019 was issued claiming the due amount of *1,18,52,617.37p. There is no bifurcation of the amounts claimed in the Demand Notice. This Demand Notice was not issued to one of the borrowers Mr. Velji Vrajlal Gamot. In the application filed under Section 14 of the SARFAESI Act, there is no mention about the objection raised to the Demand Notice.

She further submitted that the Petitioners/Appellants are under financial crisis and they are not in a position to pay the pre-deposit of 50% of the amount due. The Petitioners/Appellants have to raise the funds from their friends and relatives for making a pre-deposit.

Thus, she seeks that the pre-deposit may be fixed at

25%.

In reply, Learned Counsel for the Respondent strongly opposes this waiver application. He submitted that the Sale Notice was issued on 22.08.2022, claiming the amount due as*1,75,74,967.54p as on the date of issuance of the Sale Notice. This Appeal is filed on 22.05.2025. As on that date, the amount was due of *2,84,69,389.97р. There are two properties involved in this case and one property was sold for ₹42,53,000/- and other property was sold for ₹19,49,500/-. He altar further submitted that for the sale of the two properties, the sale was confirmed, and a Sale Certificate was issued. The possession of the first item (property sold for ₹42,53,000/-) was handed over to the Auction Purchaser, and the second item (property sold for 19,49,500/-) could not be handed over for the reason that the Petitioners/Appellants belongings had not been removed till date.

Considered the rival submissions and perused the records.

It is

seen

from the submissions of Counsel appearing

for the parties and documents produced, as per the

mm

Demand Notice issued on 02.11.2019 the amount claimed as due was ₹1,18,52,617.37p. as on 31.10.2019. As per the Sale Notice dated 22.08.2022 the amount claimed as due 1,75,74,967.54p. To a query as to whether Petitioners/Appellants paid any payment towards the loan due after receipt of the Sale Notice, Learned Counsel for Petitioners/Appellants submitted that Petitioners/Appellants have not paid However, any amount. the properties were sold and third-party interest had been created. As per the settled proposition of law, sale price cannot considered for waiver of pre-deposit. It is also settled that the debt is inclusive of interest. As per the statement of the Learned Counsel for the Respondent Bank, the amount due as on 22.05.2025 was ₹2,84,69,389.97p. It is seen from the typed set produced by Learned Counsel for an Respondent that already against the interim order, Appeal in Appeal Dy. No. 448/2024 was filed seeking waiver of pre-deposit in I.A. No. 182/2024. This Tribunal directed to the Petitioners/Appellants to make the pre-deposit of ₹1.00 crore in two equal instalments of 50 lakhs each. This condition was not complied with.

Taking all these facts into consideration, this Tribunal directs the Petitioners/Appellants to make pre-deposit of 40% of 2,84,69,389.97p. to meet the requirement under Section 18(1) of the SARFAES