1. Appeal against SARFAESI action — Failure to deposit mandatory pre-deposit under Section 18. (Para 1 , 2 )
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2026 Supreme(Online)(DRAT) 954
DEBT RECOVERY APPELLATE TRIBUNAL
Vivek Bharti Sharma, Chairperson
Classic Cotton Pvt. Ltd. – Appellant
Versus
State Bank of India – Respondent
Misc. Appeal Diary No. 1517/2026
Important Points
An appeal filed under the SARFAESI Act is liable to be dismissed as rejected if the appellant fails to comply with the mandatory pre-deposit requirement stipulated under Section 18 of the Act.
Subject
Banking and Finance - Debt Recovery
Act Referred
SARFAESI Act: S.18
Headnote
(A) SARFAESI Act - Mandatory Pre-deposit - Non-compliance with direction to deposit mandatory amount under Section 18 - Failure to make the required pre-deposit leads to the automatic dismissal of the appeal as rejected. (Para 6, 7)
Issues: Whether the appeal is liable to be dismissed due to non-payment of the mandatory pre-deposit under Section 18 of the SARFAESI Act.
Issues: Whether the appeal is liable to be dismissed due to non-payment of the mandatory pre-deposit under Section 18 of the SARFAESI Act.
Legal Category Hierarchy
Advocates:
For the Appellants/Petitioners: Pranjali Asubbe, Neeta Pandit, A.R. Gupta & Co.
For the Respondents: Zulfiq Mutani, Manoj Mishra
For the Appellants/Petitioners: Pranjali Asubbe, Neeta Pandit, A.R. Gupta & Co.
For the Respondents: Zulfiq Mutani, Manoj Mishra
Table of Contents
2. Borrowers unable to comply with pre-deposit order; Bank sought dismissal for non-compliance. (Para 3 , 4 )
3. The order clearly stated failure to deposit would result in automatic dismissal of the appeal. (Para 5 , 6 )
4. Mandatory pre-deposit under Section 18 SARFAESI Act is a condition precedent for appeal; non-compliance leads to automatic dismissal. (Para 6 , 7 )
5. Appeal dismissed as rejected for failure to make mandatory pre-deposit. (Para 7 , 8 )
6. What is the consequence of failing to make the mandatory pre-deposit under Section 18 of the SARFAESI Act?
The appeal stands dismissed automatically without further reference to the Appellate Tribunal. (Para 6 , 7 )
##PAGE1##
BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present: Justice Vivek Bharti Sharma, Chairperson Misc. Appeal Diary No. 1517/2026 Between M/s. Classic Cotton Pvt. Ltd. & Ors. … Appellant/s V/s.
The Authorised Officer, …Respondent/s State Bank of India -: Order dated: 01/10/2026: -
1. Present as under:
Ms. Pranjali Asubhe & Ms. Neeta Pandit (through VC), i/b M/s.
A.R. Gupta & Co., Counsel for Applicants/Borrowers.
Mr. Zulfiq Multani, i/b Mr. Manoj Mishra, Counsel for Respondent.
2. Vide order dated 30.09.2026, the Applicants/Borrowers were directed to deposit a sum of ₹8,94,39,557/- towards the mandatory pre-deposit under Section 18 of the SARFAESI Act after having waived to 40% as per its 3rd proviso.
3. The Learned Counsel for the Applicants/Borrowers would order passed by this Appellate Tribunal on 30.09.2026 and could not make the mandatory pre-deposit despite order.
in a position to deposit the said amount.
##PAGE2##4. Per contra, the Learned Counsel for the Respondent/Bank would submit that in view of the fact that the Applicants/Borrowers have failed to make the mandatory pre-deposit, the present appeal is liable to be dismissed as rejected.
5. Considered and perused the record.
6. This Appellate Tribunal, vide order dated 30.09.2026, had unequivocally directed that in the event of failure to deposit the mandatory pre-deposit amount as required under Section 18 of the SARFAESI Act, the appeal shall stand dismissed automatically without further reference to this Appellate Tribunal.
7. As the Applicants/Borrowers have failed to comply with the aforesaid direction and have not deposited the mandatory pre-deposit amount, the present appeal stands dismissed as rejected.
8. All pending, I.As if any, stand dismissed.
Sd/-
Chairperson
01.10.2026 Psa-04
