Mahip Industries Ltd. & Ors. v. Reliance Commercial Finance Ltd.

…Appellant

Reliance Commercial Finance Ltd.

…Respondent

Case No: Appeal on Diary No. 2287/2023

Date of Judgement: 20/12/2023

Judges:

Mr Justice Ashok Menon, Chairperson

For Appellant: Mr S.S. Panesar along with Mr A. S. Paneshar, Advocate.

For Respondent: Mr Sanjay Anabhawane along with Mr Mohit Shamdasani, i/b Mr Nikhil Salvi, Advocate.

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Facts:

Argument by the Appellants:

Argument by the Respondent:

The Tribunal found that the Appellants had succeeded in establishing a prima facie case challenging the SARFAESI measures. The Tribunal also noted that the Appellants had succeeded in establishing their impecuniosity to some extent and could not be directed to deposit 50% as a pre-deposit. Considering the entire facts and circumstances of the case, the Tribunal directed the Appellants to deposit a sum of ₹1.75 crores as a pre-deposit. The Tribunal accepted the submission of a demand draft for ₹30 lakhs by the Appellants towards payment of the pre-deposit. The balance amount of ₹1.45 crores was ordered to be paid in three installments within a gap of two weeks each, with specific dates mentioned in the order. The Tribunal warned that any default in payment of the installments would result in the dismissal of the appeal without further reference. Given the payment of ₹30 lakhs, the taking over of physical possession of the secured asset on the 25th instant was deferred until the next date of hearing. The Tribunal directed that the amount deposited should be invested in term deposits in the name of the Registrar, DRAT, Mumbai, with any nationalized bank, initially for 13 months, and then renewed periodically.

Sections and Laws Referred:

Cases Cited: