SHREE RAM RAYON Vs. AUTHORISED OFFICER

JUDGEMENT

(1.) The present writ petition is filed praying for the following reliefs :-

(2.) The facts giving rise to filing of the present writ petition are as follows :-

(3.) Learned advocate Mr. K. M. Parikh appearing for the writ petitioners submitted that the demand notice issued under Sec. 13(2) of the SARFAESI Act by the respondent Bank shows the debt due of Rs.7,51,08,852.49, whereas the learned Debts Recovery Appellate Tribunal has considered the debt due as the amount of Rs.10,50,35,000.00 which, according to the respondent Bank, was the amount payable as on the date of filing of the appeal. He submitted that the learned Debts Recovery Appellate Tribunal ought to have considered "amount of debt due" as per the provisions of Sec. 18(1) of the SARFAESI Act and it ought to have been the amount as shown in the demand notice issued under Sec. 13(2) of the SARFAESI Act. He submitted that the learned Debts Recovery Appellate Tribunal ought to have considered the amount of debt due as Rs.7,51,08,852.49. He further submitted that the pre-deposit amount of Rs.4.00 crores as directed by the learned Debts Recovery Appellate Tribunal is equivalent to 40% of the outstanding amount of Rs.10,50,35,000.00 as on date and therefore, the same is bad, illegal and not tenable in the eye of law and it is beyond the provisions of Sec. 18(1) of the SARFAESI Act. He further submitted that the amount of debt due should have only been considered as per the demand notice issued under Sec. 13(2) of the SARFAESI Act. He submitted that if the amount of debt due is taken as per the amount due in the demand notice issued under Sec. 13(2) , then the petitioners have already deposited an amount of Rs.2.00 crores which is more than 25% of the amount as per the demand notice. Further, according to his submission, the Debts Recovery Appellate Tribunal ought to have taken a lenient view by directing the petitioners to deposit the amount equivalent to 25% of the outstanding amount as per the demand notice issued under Sec. 13(2) and therefore, the pre- deposit of Rs.2.00 crores before the Debts Recovery Appellate Tribunal be considered as sufficient and valid pre-deposit as per the provisions of Sec. 18(1) of the SARFAESI Act for entertaining the appeal of the petitioners on merits. He further submitted that this Court, in various judgments involving the issue of pre-deposit, has taken a view that the issue of pre-deposit should be leniently considered when interim orders are challenged before the Appellate Tribunal under various Acts.