R V SAXENA Vs. UOI

JUDGEMENT

(1.) This writ petition has been filed challenging the order of the Debt Recovery Appellate Tribunal (DRAT) dated 23.9.2005 and praying for declaring the proviso to Section 18(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter refer to as the Act) which requires pre-deposit for entertainment of the appeal under Section 18 of the Securitisation Act as ultra-vires Article 14 of the Constitution of India.

(2.) Heard learned counsel for the parties and perused the record.

(3.) The petitioner is a retired Government servant. Respondent No.3 M/s Graffiti Infotech Ltd. is a company registered under the Indian Companies Act and is carrying on the business of dealing in laptop computers etc. Presently, it is being managed by respondent No.4. The respondent No.3 availed certain credit facilities to the extent of Rs.30 lakhs by way of hypothecation of stocks etc. Immediately after availing the loan from respondent No.2/Punjab & Sind Bank, respondent No.3 has been showing losses. On account of irregularities in repayment to respondent No.2, the said respondent No. 2 declared respondent No.3 as a non-performing asset on 31.3.2002.