Pre-deposit waiver for a sick unit was granted on proof of financial hardship and continuing losses.

Pre-deposit pending appeal was waived where the appellant established sick-unit status, continuing financial hardship, accumulated losses, and supporting BIFR and State Government relief-undertaking recognition. The Tribunal treated these facts as sufficient to justify relief from the deposit condition during the pendency of the appeal, and the stay order was modified accordingly. The disputed amount was not required to be deposited while the appeal remained pending.

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Issues: Whether the appellant was entitled to waiver of the pre-deposit requirement pending appeal on account of its sick-unit status, financial hardship, and the State Government notification treating it as a relief undertaking.

Analysis: The appellant's financial statements showed substantial accumulated losses and continuing poor financial condition. The Tribunal also took note of the earlier finding that the unit was sick, together with the BIFR order and the State Government notification extending the relief-undertaking status. In these circumstances, the Tribunal treated the case as one warranting relief from the pre-deposit condition during the pendency of the appeal.

Conclusion: The pre-deposit requirement was waived for the present appeal.

Final Conclusion: The stay order stood modified and the appellant was relieved from depositing the disputed amount while the appeal remained pending.

Ratio Decidendi: Where the appellant establishes sickness of the undertaking and continuing financial hardship, the pre-deposit condition may be waived pending appeal.

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