Raj Singh Yadav vs Yes Bank Ltd.

Ranjit Singh, J

The appellant had approached the Tribunal below in his pending SA praying for grant of breathing time to make the payment. The appellant pleads that he had unconditionally deposited Rs. 20 lacs with the respondent Bank and expressed his willingness to discharge the liability without contesting the plea on merit. The Tribunal below after hearing the Counsel for the appellant as well as the Bank restrained the authorized officer of the Bank from proceeding further with the SARFAESI proceedings till the next date fixed for hearing subject to the condition that the appellant would submit his proposal to the authorized officer of the Bank along with an undertaking to pay a sum of Rs. 25 lacs by 15th March, 2015 and Rs. 20 lacs by 30th March, 2015 and the entire remaining amount by 30th April, 2015. The appellant could not comply with these conditions as he failed to make the deposit of Rs. 25 lacs by 15th March, 2015.

When the case came up for hearing before the Tribunal on 19th March, 2015, the Counsel for the appellant pleaded before the Tribunal that the amount could not be deposited on account of some mischief created by the Officer of the Bank. The Tribunal found that the appellant had not complied with the order dated February 20, 2015. The Tribunal accordingly vacated the interim order and adjourned the S.A. with direction to the Bank to file reply. Aggrieved against the order passed on 19th March, 2015 the appellant has filed the present appeal.

While issuing notice in this appeal on 24th March, 2015, directions were issued to the appellant to deposit a sum of Rs. 25 lacs by 4 p.m. on same date. The appeal was adjourned to today. The interim order passed by the Tribunal below was to enure till further orders. Soon thereafter the appellant came with another application which was filed on 27th March, 2015. The case set up by the appellant was that he had gone to the Bank with a cheque, but the Bank did not accept the same on the ground that the certified copy of the order was not available. Certified copy of the order was obtained by 3 p.m. and, thus, the cheque could be presented only at 4.30 p.m. was the stand taken by the appellant. By imposing costs of Rs. 10,000, the appellant was allowed to make the deposit on the same day and the said application was disposed of.

In response to the notice, the Bank has put in appearance. It is pointed out that the appellant gave a cheque for making the deposit on 15th March, 2015 which was dishonoured. Subsequently, however, he gave a demand draft and, thus, this payment could be made only on 27th March, 2015 pursuant to the orders passed by this Tribunal. A sum of Rs. 20 lacs, which was required to be deposited by 30th March, 2015 was, however, paid on 31st March, 2015. The Counsel for the Bank would point out that further proceedings of the Tribunal below was stayed subject to the condition that the appellant would discharge the entire liability on 30th April, 2015. As per the Counsel, the liability outstanding as on date is Rs. 77,20,637.56. This is, however, disputed by the Counsel for the appellant, who says that a sum of Rs. 20 lacs deposited is not being accounted for.

Since the appellant has now complied with the conditions imposed by the Tribunal below though in part, it would be for the Tribunal below now to consider the SA which the appellant has filed. The appellant would be at liberty to seek continuance of the interim order from the Tribunal below. The Bank would be at liberty to seek vacation of the interim order which shall enure till 11th May, 2015 the date being fixed for hearing before the Tribunal below.

The parties through their Counsel are directed to appear before the Tribunal below on 11th May, 2015. If need be, the Tribunal below will take up the SA by preponing the date of hearing. Interim order shall continue till 11th May, 2015 and thereafter it will be for the Tribunal below to pass any appropriate order in this regard. The appeal is accordingly disposed of in the above terms.

Order dasti as well.