S. Shyamala Vs. The Presiding Officer Debts Recovery Tribunal III Chennai - Conditional order of DRT

High Court Madras (04.01.2022) In S. Shyamala Vs. The Presiding Officer Debts Recovery Tribunal III Chennai [W.P.No.28044 of 2021] held that; 

• The petitioner fails to show any provision which mandates the DRT not to pass a conditional order for payment of the amount beyond 20% in the possession notice and to take note of the amount already deposited. Section 18, referred to by learned counsel for the petitioner, is not applicable to DRT, but only to DRAT.

Excerpts of the Order;

The writ petition has been filed to challenge the order of the first respondent for imposing the condition to deposit 20% of the amount claimed in the demand notice issued under Section 13(2), namely Rs.27.59 lakh without taking into account the payment of Rs.9.36 lakh made by the petitioner.

 

# 2. Learned counsel for the petitioner submits that the Debts Recovery Tribunal, while passing the interim order on 19.08.2021, imposed a condition to deposit 20% of the possession notice amount, ignoring the fact that the petitioner has already deposited 35% of the amount and therefore, the condition to deposit 20% of the possession notice amount is illegal. Accordingly, he seeks a direction to the first respondent to pass a fresh order.

 

# 3. A reference to Section 18 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 has been made to pursue the challenge in regard to the imposition of condition of deposit of 20% by the DRT. The prayer is accordingly to grant the relief prayed by the petitioner.

 

# 4. We have considered the submissions made by learned counsel for the petitioner and find that the interim order of DRT dated 19.08.2021 has not been challenged by the petitioner by way of an appeal on the ground that the DRAT is presently not functional in the absence of Chairperson. For that reason, the petitioner cannot invoke the jurisdiction of this Court without filing an appeal before the DRAT. The writ petition could have been maintained only when the appeal is not taken up by the DRAT in view of the absence of Chairperson.

 

# 5. Moreover, the petitioner has not challenged the order dated 19.08.2021 and therefore, the prayer made in the writ petition cannot be granted.

 

# 6. Further, the petitioner fails to show any provision which mandates the DRT not to pass a conditional order for payment of the amount beyond 20% in the possession notice and to take note of the amount already deposited. Section 18, referred to by learned counsel for the petitioner, is not applicable to DRT, but only to DRAT.

 

# 7. Thus, we do not find any merit in the writ petition. Accordingly, the writ petition is dismissed. Consequently, WMP No.29620 of 2021 is also dismissed.

 

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Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

# Section 18. Appeal to Appellate Tribunal.

(1) Any person aggrieved, by any order made by the Debts Recovery Tribunal under section 17, may prefer an appeal along with such fee, as may be prescribed to the Appellate Tribunal within thirty days from the date of receipt of the order 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.

 

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