Pre-deposit requirements under the SARFAESI Act do not necessitate repetition in interconnected appeals.

JUDGMENT

This OP(DRT) is filed seeking the following relief:

“i) To call for the records and files leading to Exhibits P1, P4 orders, Ext.P9 notice issued by the Advocate Commissioner and Exhibit P10 order scrutinize and set aside the same.”

2. Heard the learned Senior Counsel appearing for the petitioners and the learned Standing Counsel appearing for the respondent.

3. It is submitted by the learned Senior Counsel for the petitioners that the payment of a further pre-deposit of Rs.4 Crores as directed by the Debt Recovery Appellate Tribunal (DRAT) is unjustified, in view of the fact that the DRAT has already ordered pre-deposit in a connected appeal. Reliance is placed on a judgment dated 06.10.2022 of a Division Bench of this Court in W.A.No.233 of 2020, wherein it is held as follows: “38. In fact, what is under challenge before the Appellate Tribunal predominantly is the dismissal of T.S.A No.10/2016 by the Debt Recovery Tribunal; however, the order passed by the DRT in the interlocutory application is closely intertwined and interconnected, and therefore, the findings may have to be rendered in the appeals on the basis of the findings generated in the interlocutory application by the Tribunal thus, dismissing the Securitisation Appeal.

39. It may be true that sub-section (1) of Section 18 of the SARFAESI Act , 2002, contemplates appeal from any order made by the Debt Recovery Tribunal, but the expression 'any order' cannot be brought into play, so as to interpret the term “pre-deposit”, in contemplation of second proviso to Section 18 (1), in a circumstance like the one on hand. Therefore, we are of the considered view that the Appellate Tribunal was right in holding that there is no requirement for ordering a separate predeposit, in view of the pre-deposit ordered in AIR 690/2018. In that view of the matter, learned single Judge was also right in upholding the approach made by the Appellate Tribunal in that regard.”

Having considered the contentions advanced and having heard the learned counsel appearing on either side, I am of the opinion that the appeal submitted by the petitioners is, therefore, liable to be considered without insisting on any pre-deposit, in view of the fact that pre-deposit has already been ordered in AIR (SA) No.80 of 2022. In case the pre-deposit is made in the said AIR (SA) No.80 of 2022, AIR No.105 of 2022 which is a connected matter shall also be received on file and considered without insisting on the pre-deposit as ordered by the DRAT is made.

Sd/-

ANU SIVARAMAN JUDGE SSK/11/04 APPENDIX PETITIONER EXHIBITS Exhibit-P1 TRUE COPY OF THE DEMAND NOTICE BEARING REF.NO. SAMB/EKM/2018-19/176 DATED

28.06.2018.

Exhibit-P2 TRUE COPY OF THE REPLY UNDER SECTION

13(3A) DATED 17.08.2018 FILED ON BEHALF OF THE PETITIONERS.

Exhibit-P3 TRUE COPY OF THE REPLY TO THE LEGAL NOTICE SUBMITTED BY THE RESPONDENT DATED

07.09.2018.

Exhibit-P4 TRUE COPY OF THE ORDER IN I.A.NO.487/2022 IN S.A.NO.47/2019 DATED 20.04.2022 PASSED BY THE HON'BLE DRT-1, ERNAKULAM.

Exhibit-P5 TRUE COPY OF THE AIR (SA) NO. 105/2022 FILED BEFORE THE HON'BLE DRAT, CHENNAI.

Exhibit-P6 TRUE COPY OF THE WAIVER APPLICATION AS I.A.NO.252/2022 IN AIR(SA) 105 OF 2022 FILED BEFORE THE HON'BLE DRT, CHENNAI DATED 20.04.2022.

Exhibit-P7 . TRUE COPY OF THE UNNUMBERED STAY PETITION IN AIR(SA) 105 OF 2022 FILED BEFORE THE HON'BLE DRT, CHENNAI DATED

20.04.2022.

Exhibit-P8 . TRUE COPY OF THE JUDGMENT DATED

02.09.2022 IN OP(DRT) NO. 352 OF 2022 PASSED BY THIS HON'BLE COURT.

Exhibit-P9 TRUE COPY OF THE NOTICE ISSUED BY THE ADVOCATE COMMISSIONER DATED 20.10.2022.

Exhibit-P10 TRUE COPY OF THE ORDER PASSED IN I.A.NO.223/2022 (WAIVER) IN AIR(SA)

105/2022 DATED 26.10.2022 PASSED BY TEH DRAT, CHENNAI DOWNLOADED AS PUBLISHED IN THE WEBSITE.

Exhibit-P10(a) TYPED COPY OF THE ORDER PASSED IN I.A.NO.223/2022 (WAIVER) IN AIR(SA)

105/2022 DATED 26.10.2022 PASSED BY THE DRAT, CHENNAI.

Exhibit-P11 TRUE COPY OF THE ORDER DATED 14.06.2022 IN IA NO. 113/2022 PASSED BY THE DRAT, CHENNAI