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Judgment
Ashok Menon, Chairperson
This is an application for restoration of the appeal which was dismissed for non-compliance of the order of this Tribunal dated 08.11.2023 to make a pre-deposit extended by the orders dated 11.12.2023 and 01.01.2024. The last instalment of ₹2.75 crores was payable on or before 15.01.2024. The Appellants could deposit only ₹50 lakhs towards the said amount and for the payment of the balance ₹2.25 crores the Appellants sought further time. Vide order dated 15.01.2024 the extension of time was declined and the appeal was dismissed for default.
The Appellants have now filed this restoration application offering to pay the entire sum of ₹2.25 crores and to restore the appeal.
The Respondent Bank has vehemently opposed this application stating that in the last order, this Tribunal had specifically mentioned that granting of the further extension of time would be unjust to the Respondent.
The demand as per the demand notice under Sec. 13(2) was for an amount of ₹13,77,85,111/-. Considering this as the threshold amount ₹5 crores was directed to be deposited under Sec. 18(1). The Respondent had also contended that the demand was made on 30.05.2021 and subsequent interest has also accrued making the total dues to ₹22,21,91,168.82. The Respondent had also argued that there is also an amount due to DNS Bank and the total dues to the creditors would be ₹56,00,22,168/-. However, the Appellants were given the concession of paying only ₹5 crores as a pre-deposit for entertaining the appeal. Hence, the Ld. Counsel appearing for the Respondent Mr Rohit Gupta vehemently opposed the restoration of the appeal.
It is true that the Appellants were granted two extensions for depositing the amount of ₹5 crores in instalments. Further extension was declined when there were outstanding dues of ₹2.25 crores and the appeal was dismissed on 15.01.2024. The Ld. Counsel for the Appellants Mr Rishabh Shah pleads that the Appellants were under financial strain and had to arrange the amount from other sources which includes their investors M/s J. C. Followers Asset Reconstruction Company.
the Appellants have indeed been granted maximum indulgence but they have ultimately come up with the entire amount, though belatedly. In the interest of justice, it is only appropriate that the appeal be entertained on merits and an opportunity granted to the Appellants. For causing the delay, they will have to put it to terms.
In the result, the application is allowed subject to deposit of the entire balance of pre-deposit ₹2.25 crores by tomorrow i.e. 28.02.2024. The appeal shall be restored to file subject to the condition that apart from the aforesaid deposit, the Appellants also pay costs ₹20,000/- to the D.R.T. Bar Association, Mumbai for the purchase of books and periodicals by tomorrow i.e. 28.02.2024.
Post on 29.02.2024 for reporting compliance regarding payment & costs.