KUAAN INTERNATIONAL Vs. ASSET RECONSTRUCTION COMPANY

JUDGEMENT

(1.) SINCE the 1st respondent/caveator is present through its Counsel, the caveator is discharged. Heard parties Counsel on application I.A. No. 130/2013 filed by the appellant seeking waiver of the deposit required under Section 18 of the SARFAESI Act. Mr. Dutta points out that the Tribunal below has passed the order impugned in respect of this matter as well as in respect of three other matters, including Second Appeal No. 527/2012 - -M/s. Kumar Aluminum v. ARC. He further points out that M/s. Kumar Aluminium had also filed the appeal (No. 39/2013) against that order wherein this Tribunal, while disposing of a similar application filed under Section 18 of the SARFAESI Act, had taken into consideration that the total amount claimed in respect of ail the four companies was Rs. 5,56,60,345/ - and had ordered for the payment of 25% of the said amount on 27.12.2012 and, accordingly, an amount of Rs. 1,39,25,000/ - was deposited by way of FDR in the name of the Registrar of this Tribunal. According to Mr. Dutta, the amount deposited includes 25% of the amount claimed in respect of this matter and as such the appellant be exempted from depositing any further amount in compliance of the requirement of the second proviso to Section 18(1) of the SARFAESI Act for the entertainment of this appeal.

(2.) MS . Rungta, however, submits that in Kumar Aluminum's case this Tribunal had granted the indulgence of reducing the requirement of deposit to 25% as it was of the view that the account in question was not properly classified as NPA.

(3.) ALSO heard the parties Counsel on admission. Mr. Dutta points out that the appellant was sanctioned three credit facilities in July 2000 by the Oriental Bank of Commerce, namely, (1) Cash Credit (Hypothecation) up to the limit of Rs. 60 lacs, (2) Cash Credit (Book Debt) up to the limit of Rs. 30 lacs and (3) Term Loan of Rs. 56 lacs out of which only Rs. 41.99 lacs were availed. He further points out that the Bank had issued demand notice dated 31.1.2003 under Section 13(2) of the SARFAESI Act claiming an amount of Rs. 1,65,91,235/ - in respect of all the aforesaid facilities, showing that the loan account was classified as NPA on 31.3.2002.