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2019 (8) TMI 903 - SC - Indian LawsWithdrawal of the Deposit of a sum, which was deposited to prove bonafides when revised order was made - deposit was not towards satisfaction of the debt in question - refund of the same is sought for - loan taken by Consortium Bank could not be repaid as the appellant was declared Non-Performing Asset (NPA) - HELD THAT:- In the present case the deposit of ₹ 40 crores in terms of the order of the High Court on 11.10.2017 was only to show the bona fides of the appellants when a revised offer was made by them. The deposit was not towards satisfaction of the debt in question and that is precisely why the High Court had directed that the deposit would be treated to be a deposit in the Registry of the High Court. In the case of AXIS BANK VERSUS SBS ORGANICS PRIVATE LIMITED AND ANOTHER [2016 (4) TMI 917 - SUPREME COURT] the questions that arose for consideration were whether the money deposited, in order to maintain an appeal under Section 18 of the SARFAESI Act before the Debts Recovery Appellate Tribunal (DRAT) could be adjusted towards the amount due to the concerned bank and whether the concerned bank had a lien over the money so deposited - Going by the law laid down by this Court in Axis Bank3 the ‘secured creditor’ would be entitled to proceed only against the ‘secured assets’ mentioned in the notice under Section 13(2) of the SARFAESI Act. In that case, the deposit was made to maintain an appeal before the DRAT and it was specifically held that the amount representing such deposit was neither a ‘secured asset’ nor a ‘secured debt’ which could be proceeded against and that the appellant before DRAT was entitled to refund of the amount so deposited. The submission that the bank had general lien over such deposit in terms of Section 171 of the Contract Act, 1872 was rejected as the money was not with the bank but with the DRAT - In the instant case also, the money was expressly to be treated to be with the Registry of the High Court. The appellants are entitled to withdraw the sum deposited by them in terms of said order dated 11.10.2017. Their entitlement having been established, the claim of the appellants cannot be negated by any direction that the money may continue to be in deposit with the Bank. Appeal allowed.
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