M/s. Shree Nivasan Sales v. State Bank of India & Anr.

M/s. Shree Nivasan Sales

…Appellant

…Respondent

Case No: Appeal on Diary No. 1136/2023

Date of Judgement: 03/10/2023

Judges:

Mr. Justice Ashok Menon, Chairperson

For Appellant: Mr. Sandeep Bhatt, Advocate.

For Respondent: Mr. Vinaya Chavan, Mr. S.S. Panesar, Advocate.

Download Court Copy CLICK HERE

Facts:

Arguments by the Appellant:

Arguments by the Respondents:

The Respondent Bank was represented by Mr. Vinaya Chavan, Advocate, and Respondent No. 2 was represented by Mr. S.S. Panesar, Advocate.

Cases Cited:

Sections and Laws Referred:

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)

• • Section 13(2) (Notice of Demand)
  • Section 13(3) (Contents of Notice)
  • Section 13(4) (Possession of secured asset)
  • Section 14 (Chief Metropolitan Magistrate or District Magistrate to assist secured creditor in taking possession of secured asset)
  • Section 18(1) (Right to appeal)

Conclusion:

Based on the above analysis, the Tribunal disposed of the I.A. No. 489/2023 with the following directions: The Appellant shall deposit ₹1.70 crores as a pre-deposit, payable in three instalments with specific dates mentioned in the order. In default of any amount, the appeal shall be dismissed without any further reference to the Tribunal. Upon the deposit of the first instalment amount on time, the Appellant shall be entitled to get interim relief to the extent that the Respondent No. 2 shall not create any third-party interest over the property until the next date of hearing. The amounts deposited shall be 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 Respondents are at liberty to file a reply in the Appeal with an advance copy to the other side. The matter is posted on 26.10.2023 for reporting compliance regarding the payment of the first instalment.