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IN THE HIGH COURT OF JUDICATURE AT BOMBAY

: NAGPUR BENCH : NAGPUR.

WRIT PETITION NO. 5818 OF 2015

M/s NARAYANA FARM PRODUCE PVT. LTD., NAGPUR AND OTHERS

VERSUS

THE BANK OF MAHARASHTRA, NAGPUR

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Office Notes, Office Memoranda of

Court's or Judge's Order

Coram, appearances, Court's Orders

or directions and Registrar's order

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Mr. M. Datta, Advocate with Mr. N.A. Chawhan, Advocate for petitioners

Mr. M. N. Phadke, Advocate for the respondent.

CORAM : SMT. VASANTI A. NAIK and

PRASANNA B. VARALE, JJ.

DATE : DECEMBER 16, 2015.

By this petition, the petitioners impugn the order of the

Debts Recovery Appellate Tribunal, dated 19.08.2015, rejecting

the application filed by the petitioners seeking waiver of the

pre-deposit in the circumstances of the case. In the alternative,

the petitioners challenge the provisions of Section 18 of the

Securitisation and Reconstruction of Financial Assets and

Enforcement of Security Interest Act, 2002 (hereinafter

referred to as 'the Securitisation Act' for the sake of brevity)

pertaining to the pre-deposit for entertainment of an appeal

under Section 18 as ultra-vires, illegal, unconstitutional,

arbitrary and against the principles of natural justice. The

petitioners seek a direction to the Debts Recovery Appellate

Tribunal to entertain and decide the appeal filed by the

petitioners without insisting for the pre-deposit.

The petitioners had secured a loan from the respondent-

bank and since, there was a default in payment of the same,

the respondent-bank initiated action against the petitioners

under the provisions of the Securitisation Act. The petitioners

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had mortgaged nine properties of which two were located at

Kerala and seven at Nagpur. The petitioners were served with

a notice under Section 13(2) of the Securitisation Act on

20.08.2013. The respondent-bank proceeded against the

properties situated at Nagpur under Section 13(4) of the Act on

22.11.2013. The petitioners filed an appeal against the action,

under Section 17 of the Securitisation Act and sought an

interim direction restraining the respondent-bank from selling

the properties. The notice under Section 13(4) of the Act in

respect of the properties located at Karala was also issued on

30.08.2014. An application was made by the petitioners before

the Debts Recovery Tribunal for inclusion of the properties at

Kerala in the appeal that was filed under Section 17 of the

Securitization Act. The application filed by petitioners was

dismissed by the Tribunal on 01.10.2014 on the ground that

the Tribunal does not have jurisdiction over the properties

located at Kerala. A review petition filed by the petitioners was

dismissed. On 23.02.2015, the petitioners filed an appeal

before the Debts Recovery Appellate Tribunal at Mumbai.

Along with the appeal, the petitioners had filed an application

for waiver of the pre-deposit in the circumstances of the case.

According to the petitioners, since, the pre-deposit could be

directed only against a final money decree and not against the

interim/ interlocutory order, the petitioners were not required

to make the pre-deposit under Section 18 of the Securitisation

Act. The application of the petitioner was dismissed by the

Debts Recovery Appellate Tribunal by the order dated

19.08.2015 on the ground that the appellants were not entitled

to seek waiver of the pre-deposit and the Appellate Tribunal

did not have jurisdiction to permit waiver. The petitioners

have impugned the order of the Debts Recovery Appellate

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