Jyotsna Prashant Khandagle v. Abhudaya Co- Operative Bank Ltd.
Jyotsna Prashant Khandagle
…Appellant
Abhudaya Co- Operative Bank Ltd.
…Respondent
Case No: Appeal on Dairy No.1203/2023
Date of Judgement: 17/07/2023
Judges:
Mr Justice Ashok Menon, Chairperson
For Appellant: Mr. S.S.Panchpor, Advocate.
For Respondent: Merlyn Vasudeo Monteiro, along with Mr. R.S. Gaurav M, Advocate.
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Facts:
Arguments by the Parties:
The Appellant has challenged the SARFAESI measures on various grounds, including the contention that the nine-pointer affidavit required under Section 14 of the SARFAESI Act has not been complied with. The Appellant submitted that their business failed, and they sustained heavy losses during the COVID-19 pandemic, but no evidence regarding their income was produced to substantiate the claim of financial strain.
The Ld. Counsel for the Respondent Bank submitted that as of date, the outstanding amount after deducting the payments made and the proceeds from the sale of certain properties, which is not challenged, is ₹1,59,00,000/-.
The court noted that to entertain the appeal, the Appellant must first cross the hurdle of complying with the mandatory provisions of pre-deposit contemplated under Section 18(1) of the SARFAESI Act. The court found that the Appellant is not entitled to any indulgence on the part of the Tribunal to get the amount reduced to the minimum of 25% as contemplated under the third proviso of Section 18(1) of the SARFAESI Act. The Appellant was directed to deposit a sum of ₹77,00,000/- as pre-deposit. The Ld. Counsel for the Appellant submitted that the Appellant will deposit ₹2,00,000/- today by way of a Demand Draft in favor of the Registrar of the Tribunal. The balance amount of ₹75,00,000/- shall be payable in three equal installments of ₹25,00,000/- each, with the first installment due on or before 07.08.2023, the second installment due on or before 21.08.2023, and the third installment due on or before 04.09.2023. Since the Appellant agreed to deposit a Demand Draft of ₹2,00,000/- today, the possession intended to be taken today shall be deferred until further orders. In default of payment of the installments, the Appeal shall stand dismissed without any further reference to the Tribunal. The amounts shall be deposited in the form of a Demand Draft with the Registrar of the Tribunal and invested in term deposits in the name of the Registrar, DRAT, Mumbai, with any nationalized bank, initially for 13 months, and thereafter to be renewed periodically. The Respondent was given liberty to file a reply in the Appeal with an advance copy to the other side.
Cases Cited:
None
Sections and Laws Referred: