Pre-deposit condition governs stay of recovery pending appeal, with balance demand kept waived on timely compliance.

Pending disposal of the appeal, the appellant was required to make a pre-deposit of Rs. 1,00,000 within two months. On compliance with that deposit condition, recovery of the balance demand remained waived until the appeal was finally decided. The operative effect was a conditional stay arrangement tied to timely deposit, with further recovery held in abeyance during the appellate proceedings.

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Issues: Whether the appellant should be directed to make a pre-deposit pending disposal of the appeal and whether recovery of the balance demand should remain stayed during the pendency of the appeal.

Outcome: The appellant was directed to pre-deposit Rs. 1,00,000 within two months, and on such deposit the balance demand remained waived till disposal of the appeal.

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