(1.) The short issue in this case is on maintainability of an appeal before Debt Recovery Appellate Tribunal. A person claiming to be tenant in respect of a secured asset prior to mortgage was directed to make a pre-deposit to entertain the appeal. The petitioner placed reliance on the judgment of the Madras High Court in Sree Jeya Soundharam Textile Mills Pvt.Ltd. and Ors. Vs. Canara Bank and Ors. [(2019) SMLJ 385] and argued that there is no requirement to make such deposit by the third parties, who are aggrieved by the steps taken under SARFAESI Act. The relevant paragraph of the judgment reads thus:
(2.) The petitioner's case is that she was the tenant prior to mortgage. She only seeks to protect her interest to remain in the secured asset. Such a person cannot be directed to make the pre-deposit, who has no connection with the liability of the mortgager. The only question to be considered is whether such a person is having any interest by way of lease or not. That question can be decided only by appreciation of materials and evidence produced before the Tribunal. In the light of the Judgment of the Madras High Court, the impugned order is set aside. The appeal is directed to be entertained and disposed in accordance with law.
(3.) It is submitted by the learned counsel for the Bank that the Securitisation Application submitted by the petitioner has been dismissed by the Tribunal for non compliance of the interim direction. This is a matter to be considered by the Appellate Tribunal. In the light of above, the impugned order is set aside. The Appellate Authority is directed to dispose the appeal in accordance with law after hearing both the parties.