Under Section 18 of the SARFAESI Act, a mandatory pre-deposit is a prerequisite for the registration of an appeal; consequently, no interim stay can be granted until the appeal is formally registered following the deposit of the required amount.

The matter is taken up for hearing by way of a praecipe filed by the Applicants/Appellants for seeking urgent relief.

2. The present Appeal is filed against the impugned order dated 17.04.2026 passed by the Learned DRT-Aurangabad in I.A. No. 1026/2026 in S.A. No. 134/2024. In the Appeal, the Applicants/Appellants have filed I.A. No. 278/2026 for waiver of pre-deposit under section 18 (1) of the SARFAESI Act .

3. The Learned Counsel for Applicants/Appellants would submit that pre-deposit amount be reduced to minimum of 25% of the outstanding amount as per the 3rd proviso to Section 18 of the SARFAESI Act .

4. Learned Counsel for the Applicants/Appellants would further submit that the Applicants/Appellants have deposited ₹25.00 lakhs with the Bank as per the directions of the Learned DRT, Aurangabad. Therefore, the mandatory deposit be waived.

5. Learned Counsel for the Appellant would further submit that they have suffered severe financial distress. As a vendor supplying components to M/s Videocon, the Appellant firm sustained heavy losses following the collapse of Videocon in 2018, which was further compounded by the economic impact of the COVID-19 pandemic. Consequently, the Appellants defaulted on the loan facilities (Cash Credit of ₹3 Crores and Term Loan of ₹30 Lakhs), leading the Respondent Bank to issue a Demand Notice dated 04.10.2022 for a sum of ₹4,83,00,149.76p. The Ld. Counsel for the Appellants has drawn attention to the bona fides of the borrowers, noting that they have already deposited ₹25 Lacs on 07.04.2026 in compliance with an earlier DRT order dated 01.04.2026. Furthermore, the Appellants have submitted OTS (One Time Settlement) proposals and deposited token amounts to show their intent to resolve the dues.

6. The Learned Counsel for Applicants/Appellants would submit that the possession of the property is scheduled on 22.04.2026. Hence, prays for an interim stay to the same.

7. Per contra, Learned Counsel for the Respondent Bank would submit at bar that on 17.04.2026, order has been passed by the Leaned DRT-Aurangabad directing the Respondent Bank to defer the possession of secured assets fixed for 22.04.2026 in case the Applicants/Appellants deposit ₹1.49 crores by 22.04.2026 before 12.00 noon and that the same has not been complied with by the Applicants/Appellants; therefore, no ground is made out for waiver of pre-deposit. Learned Counsel for the Respondent Bank would further submit that as on 22.04.2026 the outstanding amount is ₹5,86,21,286.88p

8. The Learned Counsel for the Respondent Bank would submit that as per Section 18 of SARFAESI Act no appeal can be entertained unless mandatory deposit as per 1st proviso to Section 18 of the Act is deposited. He would further emphasis that until the mandatory deposit as per Section 18 of the Act is made, no appeal can be registered; that, hence prior to deposit of this pre-deposit there is no appeal in the eyes of law.

9. Considered and perused the records.

10. In view of the above, the waiver application is allowed, and the Applicants/Appellants are directed to deposit 40% of ₹5,86,21,286.88p-, which comes to ₹2,34,48,514/-. On deposit of the amount, Registry is directed to register this appeal and interlocutory application and put before the Appellate Tribunal.

11. It is pertinent to note that the judgment dated 04.03.2026 in Writ Petition No. 15718/2025 in Anil Kumar Pawar & Anr V/s T