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Ld. Counsel for both sides are present in VC.

This application is filed seeking waiver of pre-deposit under Section 18 of the SARFAESI Act, for entertaining the appeal.

This appeal is filed against the order of the Ld. Presiding Officer passed by DRT-I, Ahmedabad on 22.5.2026 in SA 366/2024, declining to grant stay of all further proceedings in the said SA.

It is submitted by Ld. Counsel for the petitioners/appellants that SA No.366/2024 was originally filed to set aside the possession notice dated 3.10.2024 and subsequently an amendment has been made in the SA to challenge the order passed under Section 14 of the SARFAESI Act, by Ld. CJM, Gandhi Nagar in CRMA No.936/2026 on 15.4.2026. The main SA is still pending. It is further submitted that there are various irregularities and illegalities in the measures taken under the SARFAESI Act.

It is further submitted that Section 13(2) demand notice was originally issued on 19.12.2022 and without withdrawing the said demand notice, a fresh demand notice was issued on 18.3.2024; there is no bifurcation of the principal and the interest in the amount shown as due. Petitioners sent objections to the demand notice on 9.4.2024 and that was also replied by the respondent on 29.4.2024. However, in the application filed under Section 14 of the SARFAESI Act, it was stated that petitioners had not sent any reply/objections to the demand notice. False information was furnished for obtaining order under Section 14 of the SARFAESI Act. Ld. CJM had ordered possession to be taken on a public holiday, which is against the rules and proposition laid by the Hon'ble High Court of Bombay. There are other grounds taken in the SARFAESI applications, though the aforesaid grounds are primary grounds. None of them was considered by the Tribunal at the time of rejecting the interim prayer sought. Therefore, Ld. Counsel for the petitioners/appellants sought waiver of pre-deposit. No other ground is made out for waiver of pre-deposit.

In reply, Ld. Counsel for the respondent financial institution opposed this application on the ground that enough details were given in the demand notice with regard to bifurcation of the principal and the interest. Ld. CJM had passed the order taking into consideration the material produced and that there is no challenged made to that order. That was also considered by the Ld. Presiding Officer. It is further submitted that petitioners had not made any payment after issuance of the demand notice. As per Section 14 application, the amount due is Rs.55,09,444.51p. He further submitted that appeal cannot be entertained without pre-deposit.

I have considered the rival submissions and perused the records.

The grounds raised by the Ld. Counsel for the petitioners/appellants on merits will be considered while deciding the main appeal. Pre-deposit is mandatory for entertaining the appeal. Admittedly, the secured asset is not sold so far. As per the demand notice dated 18.3.2022, the amount due is Rs.40,44,306.05p. As per Section 14 application, the amount due is Rs.55,09,444.51p, as on 28.3.2026.

Therefore, with a view to given an opportunity to the petitioners to pay the loan due and save the secured asset from being sold, this Tribunal directs the petitioners to make a pre-deposit of 30% of Rs.55,09,444.51p towards pre-deposit, to meet the requirement of Section 18 of the SARFAESI Act, for entertaining the appeal.

Accordingly, petitioners are directed to deposit 30% of the Rs.55,09,444.51p, which comes to Rs.16,52,833.35p in two instalments, of which, first instalment of Rs.8,26,417/- shall be paid on or before 12.6.2026 and the second instalment of Rs.826,417/- shall be paid without three weeks thereafter i.e. on or before 2.7.2026, failing which, appeal would stand rejected.

If the first instalment of Rs.8,26,417/- is made on or before 12.6.2026, possession of the secured asset scheduled on 14.6.2026 to be deferred till the next date of hearing. If first instalment is not paid as mentioned above, respondent is at liberty to proceed as per law.

The said pre-deposit should be paid in the form of Demand Draft in favour of Registrar, DRAT, Mumbai, payable at Mumbai. In case pre-deposit is made within the stipulated period, Registrar shall invest the same in a Nationalized Bank for a reasonable period and renew it periodically, till further orders are passed.

Post the matter for reporting compliance on 6.7.2026 and for further proceedings.