NEELIMA BAGARIA Vs. STANDARD CHARTERED BANK AND ORS.

JUDGEMENT

(1.) Challenge in this writ petition is to the order dated 24th February, 2015 passed by the Debts Recovery Appellate Tribunal (DRAT) by which an application filed by the bank seeking release of the pre deposit amount deposited by the petitioner herein at the time of hearing the appeal filed by the petitioner has been allowed and the request of the petitioner that the amount be refunded to the petitioner has been declined. The appeal filed by the petitioner was dismissed on 17.9.2014, thereafter the bank had filed an application seeking release of the pre -deposit amount. The objection which was raised by the petitioner herein before the Tribunal against the release of the pre -deposit amount was that the amount deposited was arranged by the petitioner from her son.

(2.) Mr. Saxena, learned Counsel for the petitioner while relying oil Sec. 18 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), submits that the reading of the Sec. and more particularly proviso would show that there was no intention of the legislature that the amount deposited as a pre -deposit at the time of hearing the appeal, is to be released in favour of the financial institution, upon the dismissal of the appeal. He further submits that the object of introducing the provision for pre -deposit is to ensure that frivolous appeals are not filed and to deter such litigations from filing appeals.

(3.) Counsel for the respondents have opposed the present petition. It is contended that once the OA is allowed and a certificate has been issued, the amount deposited by the petitioner is to be adjusted towards the decretal amount and cannot be refunded.