1. Application for waiver of mandatory pre-deposit under Section 18, SARFAESI Act for appeal registration. (Para 2 , 3 )
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2026 Supreme(Online)(DRAT) 955
DEBT RECOVERY APPELLATE TRIBUNAL
Vivek Bharti Sharma, Chairperson
Sai Vishram Co-operative Housing Society Ltd. – Appellant
Versus
Bank of Baroda – Respondent
I.A. No. 403/2025|Misc. Appeal Diary No. 1046/2025
Important Points
Parties who are neither borrowers nor guarantors are exempted from the mandatory pre-deposit requirement under the SARFAESI Act as they hold no liability toward the secured creditor.
Subject
Banking - Debt Recovery
Act Referred
SARFAESI Act: S.18, S.13
Headnote
(A) SARFAESI Act - Mandatory Pre-deposit - Applicability to Non-Borrowers - Parties who are neither借款人 (borrowers) nor guarantors are not liable to make the mandatory pre-deposit under the Act as they bear no liability toward the Respondent Bank. (Para 3, 4)
Issues: Whether the applicants, being neither borrowers nor guarantors, are required to make the mandatory pre-deposit under the SARFAESI Act.
Issues: Whether the applicants, being neither borrowers nor guarantors, are required to make the mandatory pre-deposit under the SARFAESI Act.
Legal Category Hierarchy
Advocates:
For the Appellants/Petitioners: Deepak K.
For the Respondents: Bhavesh Poojary
For the Appellants/Petitioners: Deepak K.
For the Respondents: Bhavesh Poojary
Table of Contents
2. Applicants, neither borrower nor guarantor, contested liability and mandatory pre-deposit requirement; Respondent conceded exemption. (Para 3 , 4 )
3. Applicants were neither borrower nor guarantor, thus exempted from mandatory pre-deposit under Section 18, SARFAESI Act. (Para 3 , 4 )
4. Third parties who are neither borrower nor guarantor are exempt from mandatory pre-deposit under Section 18, SARFAESI Act. (Para 3 , 4 )
5. Application for waiver of deposit allowed; appeal to be registered; reply to be filed and matter listed for hearing. (Para 5 , 6 , 7 , 8 )
6. Are third parties who are neither borrower nor guarantor required to make a mandatory pre-deposit under Section 18, SARFAESI Act?
No, such third parties are exempt from the mandatory pre-deposit requirement as they have no liability towards the bank. (Para 3 , 4 , 5 )
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BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present: Justice Vivek Bharti Sharma, Chairperson I.A. No. 403/2025 (WoD)
In Misc. Appeal Diary No. 1046/2025 Between Sai Vishram Co-operative Housing Society Ltd. & … Appellant/s Ors. V/s.
Bank of Baroda & Ors. …Respondent/s -: Order dated: 30/09/2026: -
1. Present as under:
Mr. Deepak K., Counsel for Applicant.
Mr. Bhavesh Poojary, i/b M/s. MDP Legal, Counsel for Respondent No.
1.
No representation for other Respondents despite repeated calls.
2. Heard on I.A. No. 403/2025 for waiver of deposit as mandatory under section 18 of the SARFAESI Act.
3. The Counsel for the Applicant would submit that the Applicants are neither the borrower nor the guarantors therefore, they have no liability to pay any due towards the Respondent Bank therefore they are not required to making the mandatory pre-deposit as per section
13 of the SARFAESI Act.
4. The Counsel for the Respondent would fairly consider at bar that the Applicants are neither the borrower nor the guarantors and therefore they may be exempted from making the mandatory pre-
##PAGE2##deposit.
5. I.A. No. 403/2025 is allowed accordingly.
6. The appeal be registered.
7. Reply/objections to the ground of appeal be filed with advance copy to the Appellants.
8. List the matter on 04.01.2027 for hearing.
Sd/-
Chairperson
30.09.2026
VKC-02
