SEC 18 of SARFAESI ACT

V.R.S.Prasad & anr V/S A.O., City Union Bank & anr 
A.IR:697/2011


IA 1023/11 (waiver);  Ld.  Counsel Shri K.C. Krishnamurthy appearing on behalf of the petitioners stated that the order of the Ld.  Presiding Officer is liable to be set aside and that this Tribunal may impose a condition of deposit of 25% of the dues of the bank to meet out the requirement under Sec.18 of the SARFAESI Act.

Ld.  Counsel Shri Balachander appearing on behalf of the respondent bank stated that the dues of the petitioners to the bank is Rs.57,62,565/- and that this Tribunal may direct the petitioners to deposit 50% of the said dues as mandated in the Sec.18 of the SARFAESI Act.

Heard the Ld.  Counsel.

In view of the facts and circumstances of the case the following order is passed.

“The petitioners are directed to deposit a sum of Rs.28,81,283/-  being 50% of Rs.57,62,565/- into this Tribunal on or before 18.10.2011.


  In the event the petitioners deposit the said amount of Rs.28,81,283/- into this Tribunal on or before 18.10.2011 the Authorized Officer shall stand restrained from in any way proceeding any further under the provisions of the SARFAESI Act in any manner till 19.10.2011.


 The Registry is directed to post this IA on 19.10.2011. 


 In the event the said deposit of Rs.28,81,283/- is not made into this Tribunal  on or before 18.10.2011 the Authorized officer shall be at liberty to proceed further under the provisions of the SARFAESI Act and this IA shall stand automatically dismissed”


The above order was passed on 11 th oct 2011