Ashwani Kumar Mishra, J. - (1.) This petition is directed against an order passed by Debts Recovery Appellate Tribunal, dated 25.5.2016, upon an application filed by the petitioner for waiver, from pre-deposit of amount under second proviso to Section 18(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as SARFAESI Act ). The Tribunal has determined an amount of Rs. 19,82,768.98/- as debt due and payable. By invoking jurisdiction under third proviso, 25% of debt due has been directed to be deposited, after adjusting a sum of Rs. 2 lacs already deposited earlier with the Tribunal, so that appeal be entertained on merits.
(2.) Facts, in brief, are that cash credit was extended to M/s. Thakur Brand and Company for an amount of Rs. 20,00,000/-. To secure this credit, petitioner offered his residential house as a equitable mortgage. It is not in dispute that credit remained over drawn and declared as non-performing asset. A notice under Section 13 (2) of the Act was thus issued on 9.2.2010 for an amount of Rs. 21,52,382/-, with future interest and incidental charges. Admittedly, this demand was not met and consequently, possession notice was issued exercising power under Section 13 (4) of the Act on 23rd March 2011. An auction sale notice was issued on 18.2.2012, for auctioning the mortgage property. A Securitization Appeal No. 111 of 2011 under Section 17 (1) of the SARFAESI Act was filed by the petitioner. This appeal came to be rejected by the Tribunal on 7.12.2015. Aggrieved by it, an appeal under Section 18 of the Act has been preferred by the petitioner, which got registered as Securitization Appeal No. 4 of 2016. It is in this appeal that an application has been filed for waiving the condition of pre-deposit of amount in terms of proviso to Section 18(1).
(3.) It was asserted by the petitioner that notice under Section 13(2) required deposit of a sum of Rs. 21,52,382/-, whereas a sum of Rs. 15,92,000/- has already been deposited after 13 (2) notice with the bank. A further sum of Rs. 2,00,000/- has been deposited with the Appellate Tribunal along with the appeal. Contention advanced before the Appellate Tribunal was that with such deposit, no requirement existed for any further deposit to be made by the petitioner towards pre-deposit of amount.;