Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(DRAT) 507

BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI
Vivek Bharti Sharma, Chairperson
shri Sanket Vasanta Zade – Appellant
Versus
CANARA BANK – Respondent
I.A. No. 440/2026 (WoD) | Misc. Appeal Diary No. 1204/2026

Advocates:
For the Appellants/Petitioners: Radhe Agrawal
For the Respondents: Vaishali Bhilare

Failure to make the mandatory pre-deposit under Section 18 of the SARFAESI Act within the court-stipulated timeframe results in the automatic dismissal of the appeal.

Headnote:(A) SARFAESI Act - Mandatory Pre-deposit - Non-compliance - Failure to deposit the mandatory amount as a condition precedent for entertaining an appeal under Section 18 results in the automatic dismissal of the appeal. (Para 6, 9)

Issues: Whether the appeal is liable to be dismissed for failure to make the mandatory pre-deposit under Section 18 of the SARFAESI Act.

Table of Content
1. arguments regarding the failure to meet the mandatory pre-deposit deadline and the applicant's request for extension. (Para 2 , 3 , 4 , 7)
2. court's verification of the specific deadline set in the previous order for mandatory pre-deposit. (Para 5 , 6)
3. automatic dismissal of the appeal due to lack of seriousness and non-compliance with statutory pre-deposit requirements. (Para 9 , 10)

2. The Counsel for the Applicant would submit that some more time may kindly be given to the Appellant for complying with the order dated 20.07.2026.

3. The Counsel for the Respondent would submit that the Applicant/Borrower has not complied with the order dated 20.07.2026 for making the mandatory pre-deposit as condition precedent under section 18 of the SARFAESI Act .

4. The Counsel for the Respondent would submit that in para 18 of the order dated 20.07.2026 it was specifically stated by the Ld. Lower Tribunal that in the case of failure to deposit the waived amount of the mandatory pre-deposit for entertaining the appeal, the appeal shall stand dismissed without any further reference to this Appellate Tribunal , therefore the appeal be dismissed.

She would further submit that the Applicant/Borrower had given a pursis on date 17.07.2026 before the DRT-Nagpur that if the Applicant/Borrower fails to settle the account by depositing Rs. Ten Lakhs by 20.07.2026 then Applicant/Borrower shall hand over the physical possession on 20.07.2026.

The Counsel for the Respondent places the photocopy of this duly authenticated pursis before this Appellate Tribunal. Same is taken on record.

5. Considered and perused the previous order dated 20.07.2026.

6. In para 18 of the order dated 20.07.2026, the time was given only up to 27.07.2026 to Applicant/Borrower to make the pre-deposit as per section 18 of the SARFAESI Act .

7. The Learned Counsel for the Applicant/Borrower would fairly concede at bar that he did not move any application on or prior to 27.07.2026 that the time to make the mandatory pre-deposit be extended for the reasons as are being given today orally.

9. In the considered view of this Appellate Tribunal, it seems that the Applicant/Borrower just want to gain the time and not serious to make the pre-deposit, consequently, Misc. Appeal Diary No. 1204/2026 stands dismissed automatically.

10. All pending I.As., if any, stand dismissed.

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2026 Supreme(Online)(DRAT) 507

BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAIVivek Bharti Sharma, Chairpersonshri Sanket Vasanta Zade – AppellantVersusCANARA BANK – RespondentI.A. No. 440/2026 (WoD) | Misc. Appeal Diary No. 1204/2026

Failure to make the mandatory pre-deposit under Section 18 of the SARFAESI Act within the court-stipulated timeframe results in the automatic dismissal of the appeal.

BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI
Vivek Bharti Sharma, Chairperson
shri Sanket Vasanta Zade – Appellant
Versus
CANARA BANK – Respondent
I.A. No. 440/2026 (WoD) | Misc. Appeal Diary No. 1204/2026