AI Structured Summary
Not yet generated for this judgment
Judgment
This Tribunal passed the following order on 25.03.2026 :
Misc. Application No.03/2026
On 25.3.2026, this Tribunal passed the following order:
"This application is filed by appellants for release of pre-deposit amount of Rs.50 lakhs. The appeal was dismissed for default on 02.03.2023, as no one was present for the applicants/appellants on that day.
Ld. counsel for first respondent bank opposes this application on the ground that a huge amount is still payable by the petitioner/applicants to the bank.
On 18.03.2026, it was submitted by the Ld. counsel for the respondent bank that a Writ Petition [ W.P(C) No.24439/2019] with regard to the pre-deposit was pending before the Hon'ble High Court of Punjab & Haryana and the Hon'ble High Court had granted status quo. Therefore, the matter was adjourned to this date for producing the copy of the order passed by the Hon'ble High Court along with reply to the application. However, the order passed by the Hon'ble High Court has not been produced.
Ld. counsel for the petitioner submitted that the pendency of writ petition has nothing to do with the issue of pre-deposit in this case and the order of the Hon'ble High Court has to be produced. Therefore, posted the matter on 30.03.2026 for production of the order of the Hon'ble High Court in the aforementioned Writ Petition. Else, this application will be allowed."
This Tribunal on 30.03.2026 passed the following order:
"Despite direction to produce order passed by the Hon'ble High Court of Punjab & Haryana in Writ Petition in W.P. (C) No. 24439/2019 titled "Mahavir Die Casters Pvt. Ltd. vs. Debts Recovery Tribunal", the order is not sent by the Ld. Counsel for first respondent. Therefore, post the mater after receiving aforesaid order by the registry, DRAT, Chennai. Post the matter on 13.04.2026 for aforesaid compliance and hearing."
When the matter is taken up on 13.4.2026, Ld. Counsel for the first respondent produced the order passed by the Hon'ble High Court of Punjab & Haryana in CWP-24439/2019. From the reading of this order, it can be gathered that the Hon'ble High Court observed: "...the borrower or defaulter cannot be allowed to take advantage of the amount deposited by the auction purchaser to his credit for the purpose of seeking set-off or waive the condition of pre-deposit." This order has nothing to do with the release of pre-deposit amount once the appeal is disposed.
Now, Misc. Appeal No. 289/2016 disposed and is no longer pending. Admittedly, there is a sum of Rs. 50.00 lacs deposited by the petitioners/appellants, as pre-deposit. Pre-deposit amount is neither secured debt nor security interest is created on this amount. There is no order passed under Section 13(10) of the SARFAESI Act, 2002 for attaching this amount. This amount is liable to be refunded to the petitioner/applicant on the disposal of appeal. Therefore, DRAT, Registry is directed to refund of the pre-deposit amount along with accrued interest, if any, to the petitioner/applicant.
This Tribunal also wants to record that Ld. Counsel for the respondent bank unnecessarily made a submission that Hon'ble High Court passed an order with regard to issue of pre-deposit and granted status-quo, as if the status-quo applies to the refund of pre-deposit. It is nothing but a wrong representation wasting the time of this Tribunal and also of the Ld. Counsel for appellant and others. Therefore, this application is allowed with costs to the petitioners/applicants. The respondent bank should pay cost of Rs.5,000/- to the appellants/petitioners.
File be consigned to record room.