KOUSAR BEGAM Vs. INDIAN BANK GUINDY BRANCH CHENNAI

JUDGEMENT

(1.) THE petitioners, who are the guarantors, have challenged the order dated 21. 7. 2008 passed by the Debt Recovery Appellate Tribunal, Chennai.

(2.) IT appears that the petitioners, while preferring an appeal, sought waiver of deposit requisite under Section 21 of the RDDB and FI Act, 1993. Having noticed the submission and claim of the bank in O. A. for Rs. 2,37,50,050. 48, the petitioners have been directed to deposit a sum of Rs. 50,00,000/- with the bank in two instalments within the stipulated period.

(3.) THE learned counsel appearing on behalf of the petitioners submitted that against the very same order of the DRAT, the borrowers (second and third respondents herein) have also preferred an appeal and pursuant to the order of appellate Tribunal, they have also deposited a sum of Rs. 1. 00 crore, which is approximately 40% of the due amount. Therefore, the appellate Tribunal ought not to have directed the petitioners to deposit another sum of Rs. 50. 00 lacs, which would exceed the maximum limit prescribed under the proviso to Section 21 of the RDDB and FI Act, 1993.