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Judgment
Ashok Menon, Chairperson
The matter is taken up for hearing by way of a praecipe filed by the appellants for seeking urgent relief.
The appellants are in appeal impugning the order dated 01.01.2025 in Securitisation Application No. 610/2024 (S.A.) on the files of the Debt Recovery Tribunal-II, Ahmadabad (D.R.T.) declining to grant protection to the appellants against the measures taken up by respondent bank for recovery of the debt allegedly due from them under the provision of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act of 2002 (“SARFAESI Act” for short). The appellants apprehend that they may be dispossessed from the secured assets on the 05th instant and have, therefore, expressed urgency for hearing in this appeal.
Notice has been served, but none appeared for the bank. The bank indeed has to be given sufficient time to raise their objection and it is equally important that the appeal would become infructuous in case the appellants are already dispossessed from the secured assets and their prayer is to protect their possession of the subject property. The Sarfaesi measures are still in stage 13 (4) of the SARFAESI Act, and therefore the minimum amount they have to deposit is 25% of the amount that is demanded as per the demand notice issued u/s. 13(2) of the SARFAESI Act. The demand notice issued u/s 13 (2) demands a sum of ₹2,40,76,187.30.
The appellants are, therefore, to deposit 25% of that amount towards pre-deposit initially, and the application for waiver of pre-deposit will have to be heard in detail after the respondent appears, to ascertain whether the appellants are entitled to a waiver of the balance 25% of the pre-deposit. A sum of ₹65 lakhs towards the initial pre-deposit shall be made. The Ld. Counsel appearing for the appellants are producing a demand draft for a sum of ₹10 lakhs today and the balance a sum of ₹55 lakhs shall be deposited within two weeks, i.e., on or before 17.01.2025.
Given the payment of a sum of ₹10 lakhs today, the taking over possession of the secured assets scheduled on the 5th instant shall stand deferred till the next date of hearing.
In default in payment of any of the amount/instalment on time shall entail the dismissal of the appeal without any further reference to this Tribunal.
The amount shall be deposited in the form of a Demand Draft/RTGS with the Registrar of this Tribunal. Payment by RTGS shall be communicated to the Registry for verification and intimated to the counsel for the respondents.
As and when the said amounts are deposited, they shall be invested in term deposits in the name of Registrar, DRAT, Mumbai, with any Nationalised bank, initially for 13 months, and thereafter to be renewed periodically.
Await the appearance of the respondent and list the matter on 20. 01.2025 for reporting compliance regarding the payment of the pre-deposit.