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Judgment
Ashok Menon, Chairperson
The matter is taken up for hearing by way of a praecipe filed by the appellants for seeking urgent relief.
The appellants have filed this Miscellaneous Application (M.A.) No. 89/2024 for withdrawal of the pre-deposit made by them for entertaining this appeal u/s 18 (1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act of 2002 ( “SARFAESI Act” for short). The appeal was dismissed since the appellants did not pay the entire pre-deposit.
The appellants have now filed this application for withdrawal of the amount they had deposited. The respondent bank has vehemently opposed this application and the bank also filed Miscellaneous Application No. 98/2024 for the release of the deposit amount together with the accrued interest to be appropriated towards the debt due stating that there is a debt of more than ₹3 crores due and payable.
Admittedly there is no attachment or lien over the amount and therefore, given the settled precedents of the Hon'ble Supreme Court in Axis Bank SBS Organics Pvt. Ltd. &Ano (2016) 12 SCC 18, the amount deposited by the appellants towards the pre-deposit has to be returned to them.
Hence, the M.A. No. 89/2022 is allowed and the amount lying in the deposit together with accrued interest shall be released to appellant No. 2 on proper acknowledgment and the M.A. No. 98/2022 is dismissed.