S.CHRISPINRAJ Vs. REGISTRAR DEBTS RECOVERY APPELLATE TRIBUNAL

JUDGEMENT

(1.) By consent, the Writ Petition is taken up for final disposal. Mr.Om Prakash, learned Senior Counsel accepts notice on behalf of the second respondent.

(2.) Mr.A.RL.Sundaresan, learned Senior Counsel assisted by Mr.N.R.Anantha Rama Krishnan, learned counsel appearing for the petitioner would submit that in the auction sale held on 15.11.2017, the secured assets were sold for a sum of Rs.3,03,75,000/- in favour of the 3rd respondent and a Sale Certificate has also been issued and registered on 01.12.2017 and however, physical possession of the secured assets continues to be with the writ petitioner. It is also brought to the knowledge of this Court by the learned Senior Counsel appearing for the petitioner by http://www.judis.nic.in drawing attention of this Court to the communication of the 2nd respondent dated 01.12.2017, where in, it has been stated among other things that out of the total sale proceeds, balance sum of Rs.32,99,049/- was also given to the petitioner by way of Cheque dated 01.12.2017 and would further add that since the sale is vitiated by irregularities, he filed an appeal before the Debts Recovery Tribunal-III in S.A.SR.No.12096 of 2017 and despite meritable points are raised and elaborate arguments were advanced, the Tribunal has failed to appreciate the points urged by the petitioner in proper perspective and committed a grave and serious error in dismissing the said appeal, vide order dated 07.05.2019 and challenging the legality of the same, the appeal was filed before the Debts Recovery Appellate Tribunal (DRAT) at Chennai and the petition for waiver of the pre-deposit in I.A.No857/2019 was also filed.

(3.) The learned Senior Counsel appearing for the petitioner by drawing attention of this Court to Section 18 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and would submit that as per the 3rd proviso to http://www.judis.nic.in Section 18(1) of the SARFAESI Act, the Appellate Tribunal may, for the reasons to be recorded in writing, reduce the amount to not less than twenty five percent, of debt referred to in the second proviso and since the chance of success in the appeal filed by the Writ Petitioner / appellant is very bright, prays that this Court may issue appropriate direction by reducing the amount of pre deposit, as ordered by the Tribunal in the impugned order at 25% of the amount demanded under Section 13 (2) of the SARFAESI Notice for a sum of Rs.1,45,04,023/-.