AI Structured Summary
Not yet generated for this judgment
Judgment
Ashok Menon, Chairperson
This is an application for waiver of pre-deposit u/s 21 of the Recovery of Debts & Bankruptcy Act, 1993 (for short the RDB Act).
Heard the learned counsels for Appellants and Respondents. Under the provisions of section 21 of the RDB Act, the
Appellant needs to deposit 50% of the amount of debt so due from him as determined by the D.R.T. under section 19 of the RDB Act. In the present case the D.R.T.-II, Ahmedabad, has allowed the O.A. No. 399 of 2014 vide judgment dated 12.10.2017 and directed the Appellant (original Defendant No.2) to pay a sum of Rs.1927328/- jointly and severally along with other Defendants.
The learned counsel for Appellant states that he is neither borrower nor a guarantor and that he is only a dealer of car which was allegedly agreed to be sold to the original borrower and whatever money that he has received has been repaid to the borrower since the booking of the car was cancelled by the purchaser.
The learned counsel for the Bank submits that amount was paid directly into the account of the Appellant and nothing was paid to the borrower directly, therefore, it is the responsibility of the Appellant to have returned the money to the Bank when the booking of the car was cancelled by the borrower and admittedly the amount is paid to the borrower and the borrower has no right to receive it back from the Appellant which is received from the Bank by way of loan.
Prima facie it appears that contention of the Appellant is not sustainable. He is, therefore, not entitled for any indulgence while deciding the amount of pre-deposit required to be deposited for entertaining his Appeal.
In view of above, Appellant is directed to deposit 50% of the decreed amount which is Rs.19,27,328/- which comes to Rs.9,63,664/- in two equal tranches of Rs.4,81,832/- each.
The first tranche of Rs.4,81,832/- shall be deposited on or before 11.05.2022 and the balance amount of Rs.4,81,832/- shall be deposited on or before 25.05.2022.
In case the first tranche is paid within the time stipulated, there shall be stay on further proceedings with regard to the execution of the decree.
The above amount shall be deposited in the form of a Demand Draft with the Registrar of this Tribunal. Failure to deposit the any of the above referred amounts would result in an automatic dismissal of the Appeal.
As and when the said amounts are deposited, it shall be invested in term deposits in the name of Registrar, DRAT, Mumbai, with any nationalized bank, initially for a period of 13 months and thereafter it will be renewed periodically.
Post on 12.05.2022 for reporting compliance with regard to payment of the first tranche.