GALVANOTEK INDUSTRIES PRIVATE LIMITED Vs. COVENTRY SPRING AND ENGINEERING COMPANY PRIVATE LTD. AND ORS.

JUDGEMENT

(1.) RULE returnable forthwith. By consent, heard the rival submissions at the Bar. Perused the affidavits filed on record.

(2.) THE questions posed before us in this petition is as to whether the appeal under Section 18(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "the SARFAESI Act") is maintainable without compliance as to pre -deposit of 50% sum of the debt or minimum sum 25% thereof as may be ordered by the Debt Recovery Appellate Tribunal constituted under the said Act? And whether the Debt Recovery Appellate Tribunal can waive the statutory requirement as to pre -deposit of the portion of debt i.e. 50% or sum not less than 25% thereof to maintain the statutory appeal under Section 18(1) of SARFAESI Act. Our answer to both the questions has to be in the negative for the reasons mentioned below.The facts canvassed before us, briefly stated are as under :

(3.) AGAINST dismissal of Application No. 71 of 2007 by the D.R.T. on 3.6.2011, an appeal was filed in the DRAT. On 11.4.2012, interim application for waiver of deposit was granted by the DRAT giving credit to the amount realised by the Creditor quoting Section 18(1) of the SARFAESI Act. The question was raised as to whether the waiver can be granted by the DRAT under Section 18 of the said Act. The order of waiver granted was recalled by the DRAT for reconsideration thereof. It is appropriate at this stage to refer relevant Sections which permit the statutory appeals for the borrower/Guarantor of the debt.