Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | SARFASI Pre-deposit of 50% of the amount Appeal to appellate tribunal s.18 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002) |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002: s. 18 – Appeal to appellate tribunal – Pre-deposit of 50% of the amount due from the borrower as claimed by the secured creditor under the second proviso of s. 18 – Requirement of – Auction sale – Amount already been recovered/ realised by the secured creditor by selling the mortgaged property through an auction– While calculating the amount of “debt due”, the amount deposited by the auction purchaser on purchase of the secured assets, if to be adjusted and/or appropriated towards the amount to be deposited by the borrower u/s. 18 i.e., 50% of the debt due – Held: Under s. 18, the borrower has to deposit 50% of the amount of “debt due” as claimed by the bank/financial institution/assignee along with interest as claimed in the notice u/s. 13(2) – The borrower can take the benefit of the amount received by the creditor in an auction sale only if he unequivocally accepts the sale – Borrower is not entitled to claim adjustment/appropriation of the amount realised by selling the secured properties and deposited by the auction purchaser when the auction sale is also under challenge – On facts, as the auction sale was challenged by the borrowers, the High Courts erred in directing to adjust/appropriate the amount realised by auction sale of the secured properties/deposited by the auction purchasers while considering the 50% of the amount as pre-deposit to be deposited by the borrower, while preferring an appeal before the DRAT – Recovery of Debts and Bankruptcy Act, 1993 – s. 2(g).s. 18 - “Debt due” u/s. 18, if includes the liability plus interest – Held: “Debt” means any liability inclusive of interest – On facts, the High Court erred in excluding the amount payable towards interest while considering the “debt due” – Recovery of Debts and Bankruptcy Act, 1993 – s. 2(g). |
Judge | Hon'ble Mr. Justice M.R. Shah |
Neutral Citation | 2023 INSC 14 |
Petitioner | Sidha Neelkanth Paper Industries Pvt. Ltd. & Anr |
Respondent | Prudent Arc Ltd. & Others |
SCR | [2023] 1 S.C.R. 553 |
Judgement Date | 2023-01-05 |
Case Number | 8969 |
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