Pre-deposit waiver on financial hardship was granted where the unit was sick and BIFR proceedings were pending

Waiver of pre-deposit pending appeal was granted where the dispute disclosed an arguable case on merits and the appellant showed financial hardship. The unit had been declared sick and BIFR proceedings were pending, which supported interim relief at the stay stage. The waiver was made subject to an undertaking not to alienate fixed assets during the pendency of the appeal.

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Issues: Whether waiver of pre-deposit of the disputed amount should be granted pending disposal of the appeal.

Analysis: The dispute raised an arguable issue on merits, but at the stay stage the decisive consideration was the appellant's financial hardship. The unit had been declared sick and BIFR proceedings were in progress, which supported grant of interim relief.

Conclusion: Waiver of pre-deposit was granted in favour of the appellant for hearing of the appeal, subject to an undertaking not to alienate fixed assets during the pendency of the appeal.

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