Any person aggrieved by the order of the DRT under
Section 17 of the SARFAESI Act, is entitled to prefer an appeal
along with the prescribed fee within the permitted period of 30
days. For ‘preferring’ an appeal, a fee is prescribed, whereas
for the Tribunal to ‘entertain’ the appeal, the aggrieved person
has to make a deposit of fifty per cent of the amount of debt
due from him as claimed by the secured creditors or
determined by the DRT, whichever is less. This amount can, at
the discretion of the Tribunal, in appropriate cases, for recorded
reasons, be reduced to twenty- five per cent of the debt
2) in Misc. Appl. No.100 of 2013 in SA No.132 of 2012 in the case titled M/s Shree Acids and Chemical Ltd. and Anr. vs. M/s. ASREC (India Ltd.) and Ors. requirement of pre-deposit cannot be waived. The said order may be reproduced hereunder for ready reference:-
"This Tribunal has already taken a considered view in Misc. Appeal No.100/2013 arising out of S.A. No.132/2012 (Delhi-I) M/s Shree Acid & Chemical Ltd. & Another vs. M/s ASREC (India) Ltd. & Ors. that when an appeal is filed under Section 18, requirement of pre- deposit cannot be wished away. Having known this view, the counsel for the appellant still insists on making submission to draw distinction between the judgment and the statutes and states that there will be some scope where requirement of pre deposit may not be there. Since this Tribunal has already taken a considered view, after hearing the counsel on all aspect, the Tribunal does not deem it proper to hear the counsel for the appellant afresh in this regard.
Since 25% of the amount determined is the minimum requirement of the pre-deposit, the appellant would be required to make the pre-deposit of the amount what is the minimum requirement. Let the appellant deposit 25% of the amount determined. Two months time is given to the appellant to make the pre-deposit. The Waiver Application (IA No.17 of 2013) is disposed off accordingly.
3) It was explained by the Supreme Court in Narayan Chandra Ghosh vs. UCO Bank and Ors. (supra) as under:-
"7. Section 18(1) of the Act confers a statutory right on a person aggrieved by any order made by the Debts Recovery Tribunal under Section 17 of the Act to prefer an appeal to the Appellate Tribunal. However, the right conferred under Section 18(1) is subject to the condition laid down in the second proviso thereto. The second proviso postulates that no appeal shall be entertained unless the borrower has deposited with the Appellate Tribunal fifty per cent of the amount of debt due from him, as claimed by the secured creditors or determined by the Debts Recovery Tribunal, whichever is less. However, under the third proviso to the sub-section, the Appellate Tribunal has the power to reduce the amount, for the reasons to be recorded in writing, to not less than twenty-five per cent of the debt, referred to in the second proviso. Thus, there is an absolute bar to entertainment of an appeal under Section 18 of the Act unless the condition precedent, as stipulated, is fulfilled. Unless the borrower makes, with the Appellate Tribunal, a pre- deposit of fifty per cent of the debt due from him or determined, an appeal under the said provision cannot be entertained by the Appellate Tribunal. The language of the said proviso is clear and admits of no ambiguity.
