CHERIAPANDA K UTHAPPA Vs. STATE BANK OF INDIA
DEBTS RECOVERY APPELLATE TRIBUNAL
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(1.) THIS is an application filed under Section 21 praying to waive the pre-deposit as required under the RDDB & FI Act, 1993.
(2.) The appellants are the defendants 5 to 8 in the OA and it is stated that they are the purchaser of certain items of properties, which were mortgaged to the respondent Bank. It is submitted that the appellants are neither borrowers nor guarantors for the money advanced by the respondent Bank. As such, they claim that they are not liable to make any pre-deposit as required under the Act.
The respondent on notice remained ex parte.
(3.) SECTION 21 of the Act, deals with deposit of the amount of debt due on filing an appeal, which reads as under, "where an appeal is preferred by any person from whom the amount of financial debt is due to a Bank or a financial institution or a consortium of Banks or financial institutions, such appeal shall not be entertained by the Appellate Tribunal unless such person has deposited with the Appellate Tribunal seventy five percent of the amount of debt so due from him as determined by the Tribunal under SECTION 19". The section is clear that only when an appeal is preferred by any person from whom financial debt is due to a Bank or a Financial Institution or a consortium of Banks or Financial Institutions, such persons alone could be directed to make pre-deposit as required under SECTION 21 of the Act, to entertain the appeal. The appellants have neither borrowed any amount nor they stood as guarantors and as such, no amount is due from them payable to the Bank or to the Financial Institutions.;
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