VIRENDER PAL SINGH Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) This writ petition has been preferred by the petitioner, aggrieved by the order dated 28.11.2018 passed by the learned Debts Recovery Appellate Tribunal (DRAT), Delhi in Miscellaneous Appeal No.562/2018 arising out of SA No.374/2018 (wrongly typed in the impugned order as OA No.374/2018), wherein the petitioners prayer for grant of interim relief was declined. On that day, the learned DRAT considered the petitioners submissions on the aspect of pre-deposit. The contention of the petitioner was that, as against the demand raised by the respondent/bank under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (hereinafter referred to as "SARFAESI Act") in its notice dated 27.10.2016, for Rs.72,31,969/-, the petitioner had made payment of nearly Rs.35.00 lakhs which amounted to 45% of the claimed debt by the respondent/bank, and the balance amount payable even according to the respondent bank was Rs.37,12,920/-. The petitioner claimed that in view of the said amount having been already paid to the respondent/Bank, the requirement of pre-deposit of 50% of the amount of the debt be held as complied with.

(2.) This submission of the petitioner was not accepted by the Tribunal on the premise that under the second proviso to Section 18(2) of the SARFAESI Act, the pre-deposit had to be made before the Appellate Tribunal, and not before the bank. The Tribunal held that 50% of the outstanding amount would be 50% of the amount of Rs.37,12,920/- which was still payable by the petitioner as per the amount demanded in the notice under Section 13(2) of the SARFAESI Act.

(3.) The Tribunal then proceeded to consider the issue as to whether the amount of pre-deposit should be reduced to 25% in terms of the third proviso to Section 18(2) of the SARFAESI Act, and it accepted the petitioner's submission in this regard. The Tribunal directed that the petitioner should deposit 25% of the amount of Rs.37,12,920/- and, for that purpose, granted four weeks' time to the petitioner. The petitioner then prayed for interim relief that he be not dispossessed for the said period to enable him to make the pre-deposit. On this aspect, the Tribunal observed as under:-