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Judgment
Ashok Menon, Chairperson
The Appellants are in appeal impugning the order dated 07.11.2023 in Securitization Application (S.A.) No. 57/2019 on the files of the Debts Recovery Tribunal-I, Ahmedabad (D.R.T.) whereby the aforesaid S.A. was dismissed by the D.R.T. The Appellants are aggrieved and hence, in appeal.
To entertain the appeal, the Appellants will first have to comply with the mandatory provision u/s 18 (1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act” for short). The secured assets have already been sold and the Appellants are challenging the sale. That apart, they are also challenging the demand notice u/s 13 (2) for not complying with sub-section 3 of section 13. The classification of debt as Non-Performing Assets (NPA) is also challenged and it is also stated that the symbolic possession was not by the rules. The Ld. Presiding Officer was not enthused with the challenges raised to the Sarfaesi measures and hence, dismissed the S.A.
The Ld. Counsel appearing for the Respondents submits that as of date, after making certain payments towards the OTS proposal which had come up after issuance of the notice u/s 13 (2), the
outstanding dues are around ₹43 lakhs. The Appellants have produced income tax returns to prove that they are under financial strain. It is also contended that the Appellants are having a very good prima facie case. To entertain the appeal, therefore, the Appellants will have to deposit a sum of ₹21 lakhs towards the pre-deposit u/s 18 (1). The Ld. Counsel appearing for the Appellants submits that a demand draft for a sum of ₹15 lakhs is being produced today and the balance of ₹6 lakhs shall be payable within three weeks on or before 18.01.2024.
Given the payment of the ₹15 lakhs today, the handing over possession shall stand stalled till the next date of hearing.
Default in payment of the balance amount shall entail in dismissal of the appeal without any further reference to this Tribunal.
As and when the said amount is 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.
With these observations, the I.A. is disposed of. The Respondents is at liberty to file a reply in the Appeal with an advance copy to the other side.
List on 19.01.2024 for reporting compliance.