MITEXCO Vs. CANARA BANK

JUDGEMENT

(1.) We have heard the above Writ Petition for quite some time. In the present Petition, the Petitioner challenges the order dated 30 th May, 2023 passed by the Debt Recovery Appellate Tribunal, Mumbai in Interim Application No. 285 of 2023 in Appeal (Diary) No. 653 of 2023. By the said impugned order, the DRAT directed the Petitioner herein to deposit a sum of Rs.5.00 crores as a pre-deposit under Sec. 21 of the Recovery of Debts and Bankruptcy Act, 1993. The aforesaid order of deposit has been ordered on the basis that there is a decree in the sum of Rs.10.00 crores (approximately) in favour of the 1 st Respondent Bank and, therefore, it would be fit to ask them to deposit 50% of the said amount before entertaining the Appeal.

(2.) The argument of the Petitioner is that the decree passed by the DRT in the year 2004 stands modified by the order of the Hon'ble Supreme Court dtd. 11/10/2017. According to the Petitioner, as per the order of the Hon'ble Supreme Court, the amount due and payable by the Petitioner was crystalised on Rs.87,34,962.00. This argument did not find favour with the presiding officer, DRT-I when the Petitioner made an application for amendment of the decree/recovery certificate. The application was not entertained on the ground of delay and the fact that the Petitioner had not complied with the time frame for paying the amount of Rs.87,34,962.00 as set out in the order of the Hon'ble Supreme Court. It is to challenge that order of the presiding officer that an appeal was filed before the DRAT and in which an order of pre-deposit was passed.

(3.) After we heard the parties for some time, we are of the view that interest of justice would be served if the above Appeal filed before the DRAT is heard on merits subject to the Petitioner depositing an additional amount of Rs.55.00 Lacs within a period of ten days from today. In other words, the aforesaid deposit of Rs.55.00 Lacs is in addition to the amount of Rs.21,83,741.00 already deposited on or around 26 th May, 2023. If the deposit of Rs.55.00 Lacs is made within the stipulated period (within ten days from today), the DRAT shall entertain and hear Appeal (Diary) No. 653 of 2023 on merits and in accordance with law. If for any reason, the Appeal is already dismissed, the said appeal shall stand restored, provided the amount of Rs.55.00 Lacs is deposited within ten days from today.