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Judgment
Ashok Menon, Chairperson
The matter is taken up for hearing by way of a praecipe filed by the Appellant for seeking urgent relief.
The appeal was directed to be entertained subject to the payment of ₹1.15 crores as a pre-deposit u/s 18(1) of the SARFAESI Act vide order dated 23.09.2024. The appellants had upfront paid the sum of ₹5 lakhs on the date of order. The balance was directed to be paid in two equal instalments of ₹55 lakhs each. The 1st instalment was due and payable on 07.10.2024 and the 2nd instalment was due and payable on 28.10.2024. Towards the 1st instalment which was due and payable on 07.10.2024, the appellants could not pay the entire amount as there was a shortfall of ₹30 lakhs and an extension of time was granted till 17.10.2024 vide order dated 04.10.2024. On 17.10.2024, the shortfall amount of ₹30 lakhs towards the 1st instalment was paid and the order was complied with. The 2nd instalment of ₹55 lakhs was due and payable on 28.10.2024. The appellants could pay only ₹10 lakhs towards that amount on 25.10.2024 and there is still a shortfall of ₹45 lakhs towards the 2nd instalment.
The appellants have applied for extension of time seeking three weeks to pay the balance amount stating that because of the festivities they were unable to arrange the funds that were required but earnest attempts were made by them and a sum of ₹10 lakhs they could raise was paid. The Ld. Counsel appearing for the respondent bank and also the auction purchaser has vehemently opposed this application and has submitted that no further indulgence be shown to the appellants and that the Appeal be dismissed.
It seems that the appellant had complied with the order of this Tribunal dated 04.10.2024 by paying the shortfall in the 1st instalment in time and to pay the entire amount, the appellants had time to pay till 28.10.2024. There is still a shortfall of ₹45 lakhs to be paid for which they are seeking three weeks. There is no interim order or relief granted to the appellants and the only order made is that the activities of the auction purchaser would be subject to the outcome of the appeal and therefore, no prejudice whatsoever is caused to the respondent by entertaining this Appeal. The reasons stated in the application for an extension of time appear to be reasonable and it is also noted that the appellants have earnestly made attempts to make payments towards the pre-deposit. Therefore, the application is allowed and the appellants are directed to deposit the balance amount of ₹45 lakhs within two weeks from today, ie, on or before 12.11.2024.
It is made clear that no further extension of time will be granted.
Post on 13.11.2024 for reporting compliance.