Pre-deposit conditions may be modified where the appellate authority ignores the appellant's financial capacity.

A writ challenge to a statutory appeal condition for pre-deposit was allowed in part because the appellate authority did not consider the company's financial position when fixing the amount. The Court modified the condition by reducing the cash pre-deposit and directing security or a bank guarantee for the balance, recognising that the original requirement warranted adjustment in light of the petitioner's financial circumstances. The operative effect was relief to the petitioner through a more workable appeal-condition arrangement.

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Issues: Whether the direction requiring pre-deposit of a large sum for maintaining the statutory appeal called for interference on the ground that the appellate authority had not considered the petitioner's financial position.

Analysis: The writ petition challenged the Tribunal's order directing a pre-deposit of sixteen lakhs as a condition for hearing the appeal. The Court found that the Tribunal had not gone into the petitioner company's financial aspect while fixing the amount. In these circumstances, the condition of pre-deposit was considered fit for modification.

Conclusion: The pre-deposit condition was modified by reducing the amount to eight lakhs and requiring security or bank guarantee for the balance. The relief was granted in favour of the petitioner.

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