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2018 (10) TMI 1825 - HC - Indian LawsMaintainability of appeal filed u/s 18 of the SARFAESI Act 2002 - compliance with the pre-deposit - violation of principles of natural justice - opportunity of hearing on the issue not provided - HELD THAT:- On careful perusal of Section 18 of the SARFAESI Act 2005, it could be seen that the Act does not provide for a complete waiver and it only gives power to the Appellate Tribunal under the proviso to Section 18 to exercise its discretion to reduce the amount, not lesser than 25% of the amount due, as claimed by the secured creditors. As such, the amount claimed by the respondent bank is around ₹ 229,52,99,307.86. DRAT while considering I.A. filed, seeking waiver of pre deposit under Section 18, has exercised such discretion and ordered the petitioners to make pre deposit of ₹ 70 crores, giving time for paying the said amount in two equal installments - Once the statute provides certain conditions, the same shall be followed strictly. In other words, what is not provided under the statute, cannot be claimed as a matter of right by anyone, and therefore, the claim of the petitioners herein, seeking 100% waiver, would certainly go contrary to the provision, Section 18 of the SARFAESI Act 2002. Even taking for granted that the grounds raised by the petitioners, as to whether the order passed by DRT, is sustainable or not, which can be tested before the DRAT, Chennai, by adhering to the condition to be complied with under Section 18, wherein, the appellant has to make a pre deposit of ₹ 50% for entertaining an appeal or an amount not less than 25% of the amount claimed or determined by the Tribunal, as the case may be. Since 15 crores has already been recovered towards the principle amount, as claimed under Section 13(2) of the Act, it would be appropriate to direct the petitioner to pay a sum of ₹ 57 crores as pre~deposit in two equal installments. Accordingly, the petitioner is directed to pay the 1st installment within 8 weeks from the date of receipt of a copy of this order and the second installment to be paid within 8 weeks thereof - Upon complying with such conditions of pre~deposit, DRAT, Chennai, is directed to entertain the appeal by taking the case on file and conclude the same within a period of 3 months from the date on which the second installment is paid by the petitioner. The order passed by the DRAT cannot be interfered in entirely and accordingly, modified. Interim Stay granted on 10.04.2008, which is still in force, is vacated - petition dismissed.
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