Pre-deposit under debt recovery law cannot be fully waived, but limited reduction to 25% may be allowed on special facts.

Section 21 of the Recovery of Debts and Bankruptcy Act, 1993 requires a 50% pre-deposit as a statutory condition for an appeal before the Appellate Tribunal, with limited discretion to reduce that amount for recorded reasons, but not below 25%. A complete waiver is incompatible with the statutory scheme. On the facts, the debt remained outstanding despite appropriation of compensation, so the High Court was not justified in setting aside the Tribunal's pre-deposit order. However, the peculiar circumstances warranted reduction of the deposit to 25% of the balance amount quantified by the Tribunal.

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Issues: Whether the entire pre-deposit requirement under Section 21 of the Recovery of Debts and Bankruptcy Act, 1993 could be waived, and whether the Appellate Tribunal could be directed to accept a reduced pre-deposit in the facts of the case.

Analysis: Section 21 makes deposit of fifty per cent of the debt due a statutory condition for maintaining an appeal before the Appellate Tribunal, with a limited discretion to reduce the amount for recorded reasons, but not below twenty-five per cent. A complete waiver is inconsistent with the statutory scheme. On the facts, the debt remained outstanding notwithstanding appropriation of the compensation amount, and the High Court was not justified in setting aside the Appellate Tribunal's order requiring pre-deposit. At the same time, the peculiar facts justified reducing the deposit to twenty-five per cent of the balance amount taken into account by the Appellate Tribunal.

Conclusion: The order granting total waiver of pre-deposit was unsustainable, but the respondents were entitled only to a limited reduction of the pre-deposit to twenty-five per cent of the quantified balance.

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