Sri. Sankarapandian stores (P) ltd & ors V/S SBI & anr

M.A(S.A):232/2011

Sri. Sankarapandian stores (P) ltd & ors V/S SBI & anr 

IA 456/2012 (adv.hearing);   This IA is dismissed as infructous.

MA(SA) 232/2011:  Ld. Counsel Shri Velusamy appears on behalf of appellants 1 to 7 and prays for an adjournment. 

Ld. Counsel Shri Subramanian appearing on behalf of appellants 8 and 9 stated that a sum of Rs.5.53 crores has already been paid by the appellants 1 to 9 after the issuance of Sec.13(2) notice and that this tribunal has to calculate the amount for the pre-deposit to be made under Sec.18 of the SARFAESI Act by dividing the amount claimed under Sec.13(2) by two and subtract the amount if any paid from that and then pass an order for deposit of 25% of the remaining amount.

  Ld. Counsel stated that appellants 8 and 9 are in financial difficulties and that this Tribunal by use of its discretionary powers may reduce the amount of pre-deposit from that of 50% to 25% of the dues calculated as stated above and pass orders for pre-deposit in this case.  

Ld. Counsel added that the Authorized Officer did not adhere to the procedure under the Security Interest (Enforcement) Rules, 2002 and that the Authorized Officer did not even receive 25% of the bid amount at the time of conducting the auction and prayed that the respondent bank may be directed to produce the proof for the payment of 25% on the date of auction.

Ld. Counsel Shri Om Prakash appearing on behalf of M/s Ramalingam Associates for the respondent bank stated that the amount claimed in the Sec.13(2) notice is Rs.22,72,54,292.34p and that this tribunal is required to take into consideration the amount determined in the Sec.13(2) notice and thereafter proceed to determine the amount of the pre-deposit in this case as laid down by the Hon’ble High Court of Madras in WP No.26582/11. 

 Ld. Counsel prayed that a sum equivalent to 50% of the aforesaid claim may be directed to be deposited by the appellants in this case to enable this Tribunal to entertain the appeal and added that this tribunal being bound by Sec.18 of the SARFAESI Act should not proceed to hear the appeal or should not proceed to pass any orders of stay without the pre-deposit and prayed that orders may be passed.  

Ld. Counsel also added that there are no proceedings pending before the Hon’ble High Court of Madras in this case other than WP No.13677/2012 filed by the appellants 8 and 9 and that this Tribunal may proceed to pass orders for the pre-deposit as per law.

Heard both sides.

It is seen that the amount claimed in the Sec.13(2) notice is Rs.22,72,54.292.34 and an amount of Rs.5,53,00,000/- has been paid by the appellants 1 to 9. Therefore the amount due as per Sec.13(2) notice after giving credit to the amount paid by the appellants works out to Rs.17,19,54.292.34. In view of the facts and circumstances of the case more particularly in view of the fact that this Tribunal is bound by Sec.18 of the SARFAESI Act and in view of the fact that the difficulties expressed by the appellants 8 and 9 do not outweigh the difficulties faced by the bank which is the custodian of public money which money is required to be made available for circulation to the other members of the public it would be appropriate if the following order is passed.

“The appellants 8 and 9 are directed to deposit a sum of Rs.8,59,77,147/- being 50% of Rs.17,19,54,292.17 into this Tribunal on or before 26.6.2012..  Call this MA(SA) on 27.6.2012 for verification of the compliance”

IA 529/2011 (stay);  It is seen that this IA was not taken up on 16.5.2012 due to electricity failure in this Tribunal.  It is also seen that this IA was not taken up on 18.5.2012 as the Chairperson had gone on leave.  Today MA(SA) 232/2011 has been taken up and orders for the pre-deposit have been passed.   Orders of stay cannot be passed without the pre-deposit being made as per the dictum of the  Hon’ble High Court of Madras in WP No.23708/2011 and therefore this Tribunal has to await the making of the pre-deposit Hence call this IA  along with MA(SA) on 27.6.2012 for verifying as to whether the pre-deposit has been made.  Notice to R1 to R9 by then.

IA 734/11 (direction); Call with MA(SA) on 27.6.2012

IA 1381/11 (stay); Call with MA(SA) on 27.6.2012

IA 457/2012 (stay); Call with MA(SA) on 27.6.2012

This Order was issed by THE HON'BLE CHAIRPERSON ,DRAT Chennai on24/05/2012