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TMI Blog2017 (4) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... by the secured creditors or as determined by the Debts Recovery Tribunal, whichever is less. The second proviso relates to the appeal of a borrower, for a third party, who has not obtained any finance from a Bank or a financial institution is under no obligation to pay. The second proviso reads that no appeal is to be entertained, unless the borrower has deposited with Appellate Tribunal 50% of the debt due from him. If the proviso is to be read literally to mean that no appeal, be it of a borrower or a third person, is to be entertained unless the borrower has deposited 50% of the amount of debt due from him, appeals by third persons would in effect and substance, be rendered nugatory for a third person, who would never be able to get his appeal entertained. Significantly, in this case each of the appellants have been directed to pay 50%, which means that the total deposit would far exceed the amount due and payable by Ajay Kumar Gupta.The writ petition is allowed. The impugned order is set aside to the extent that each of the appellants have all been required to pay 50% of the amount due from Ajay Kumar Gupta. - W.P.(C) 11766/2016 & CM No.46429/2016 (for stay) - - - Dated: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vour, irrevocable General Powers of Attorney, possession letters, receipts, deeds of Will and affidavits. 7. Admittedly the shop rooms/rooms were not conveyed to the petitioners by execution of registered deeds of conveyance. There was, therefore, no valid transfer of ownership of the shop rooms/rooms to the petitioners. 8. The said premises being secured in favour of the bank, the Bank invoked the provisions of the Securitization Act and attempted to take possession of the said premises, whereupon the petitioners filed applications under Section 17 of the Securitization Act in the Debt Recovery Tribunal-III, Delhi. 9. Initially, status quo was directed to be maintained in respect of the said premises. The order of status quo was later vacated by the Debt Recovery Tribunal-III, vide the order dated 16.11.2016, against which the petitioners appealed before the Debt Recovery Appellate Tribunal. 10. On behalf of the Respondent Bank it is urged that the proceedings initiated by the petitioner in the Debt Recovery Tribunal and the Debt Recovery Appellate Tribunal are frivolous, devoid of merit and an attempt to delay the realization of the dues of the Respondent Bank by disp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cured creditor for not having accepted his representation or objection or the likely action of the secured creditor at the stage of communication of reasons to the borrower shall not entitle the person (including borrower) to make an application to the Debts Recovery Tribunal under this sub-section.] (2) The Debts Recovery Tribunal shall consider whether any of the measures referred to in sub-section (4) of section 13 taken by the secured creditor for enforcement of security are in accordance with the provisions of this Act and the rules made thereunder. (3) If, the Debts Recovery Tribunal, after examining the facts and circumstances of the case and evidence produced by the parties, comes to the conclusion that any of the measures referred to in sub-section (4) of section 13, taken by the secured creditor are not in accordance with the provisions of this Act and the rules made thereunder, and require restoration of the management of the business to the borrower or restoration of possession of the secured assets to the borrower, it may by order, declare the recourse to any one or more measures referred to in sub-section (4) of section 13 taken by the secured creditors as inval ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Debts Recovery Tribunal: [PROVIDED that different fees may be prescribed for filing an appeal by the borrower or by the person other than the borrower:] [PROVIDED FURTHER 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:] PROVIDED ALSO that the Appellate Tribunal may, for the reasons to be recorded in writing, reduce the amount to not less than twenty-five per cent of debt referred to in the second proviso.] (2) Save as otherwise provided in this Act, the Appellate Tribunal shall, as far as may be, dispose of the appeal in accordance with the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993) and rules made thereunder. 14. A perusal of Section 18 reveals that an appeal may be filed by a borrower or by any other person, aggrieved by any action taken under Section 13(4) and/or order passed under Section 17 of the Securitization Act. The definition of borrower in Section 2(1) (f) of the Securitization Act includes a g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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