Amount required to be deposited under Section 18 of the SARFAESI Act be reduced to 25% of the claimed amount.

M/s.Kakumanu consultants (P) ltd & ors V/S A.O., Union Bank of India & 5 ors 
A.IR:820/2011


Ld. Counsel Shri G.R. Lakshmanan appearing on behalf of the petitioner stated that the petitioner has filed this appeal against the order dated 29.09.2011 passed by the Ld. Presiding Officer, DRT-III Chennai and stated that the appellants have ample chances of success in the appeal.  The Ld. Counsel stated that the petitioners are presently undergoing a severe financial crisis and that the petitioners are trying to sell their personal properties which are not mortgaged to the bank and that by the said sale they would be able to wipe out their entire liability and prayed that the pre-deposit required to be deposited under Section 18 of the SARFAESI Act be reduced to 25% of the claimed amount.

Ld. Counsel for the first respondent bank stated that the petitioners have not shown their bonafide and that they may be directed to deposit the entire dues to the bank as they are only delaying the recovery process by filing this appeal.  It is stated by the Ld. Counsel that as on March 2011 the dues are Rs.16,83,89,884.72.  The Ld. Counsel for the first respondent bank stated that the petition has no merits and prayed that the same may be dismissed.

Heard the Ld. Counsel.

In view of the facts and circumstances of the case and more particularly in view of the fact that the dues as on March 2011 is Rs.16,83,89,884.72 and in view of the fact that the petitioners are trying to dispose of   a   property which has   not been mortgaged to the bank to enable them to come out of the  financial crisis that they are presently facing and thus settle the entire dues of the bank and further in view of the fact that petitioners cannot be denied the opportunity to put forth their case in this appeal filed by them and also from the fact that as on 1.7.2011 a sum of Rs.17,94,98,119.72 is due to the bank it would be appropriate if the petitioners are directed to deposit a sum equivalent to 25% of Rs.17,94,98,119.72.  Accordingly the following order is passed:

“The petitioners are directed to deposit Rs.4,48,74,530/- being 25% of Rs.17,94,98,119/-  into this Tribunal on or before 5.12.2011.  In the event the petitioners deposit the said sum of Rs.4,48,74,530/- into this Tribunal on or before 5.12.2011 the Authorized officer shall stand restrained from in any way proceeding any further under the provisions of the SARFAESI Act in any manner till 5.12.2011 and the Registry is directed to post this IA on 6.12.2011.  In the event the said deposit of Rs.4,48,74,530/-  is not made into this Tribunal on or before 5.12.2011 this petition shall stand automatically dismissed. “


10th oct 2011 chennai