TaxTMI 
TaxTMI 
2017 (4) TMI 476
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....oners under Section 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, hereinafter referred to as the 'Securitisation Act' being SA No.205/2016, whereby the order of status quo in respect of the property being the subject matter of the said application has been withdrawn. 2. By the order impugned, the Debt Recovery Appellate Tribunal has directed each of the appellants, being the writ petitioners, to deposit 50% of the amount demanded by the Respondent Bank from one Mr. Ajay Kumar Gupta, in his capacity as the sole proprietor of Asian Dairy Milk Food Company. 3. The said Ajay Kumar Gupta, being the proprietor of Asian Dairy Milk Food Company, had obtained loans from the Resp....
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....secured in favour of the bank, the Bank invoked the provisions of the Securitization Act and attempted to take possession of the said premises, whereupon the petitioners filed applications under Section 17 of the Securitization Act in the Debt Recovery Tribunal-III, Delhi. 9. Initially, status quo was directed to be maintained in respect of the said premises. The order of status quo was later vacated by the Debt Recovery Tribunal-III, vide the order dated 16.11.2016, against which the petitioners appealed before the Debt Recovery Appellate Tribunal. 10. On behalf of the Respondent Bank it is urged that the proceedings initiated by the petitioner in the Debt Recovery Tribunal and the Debt Recovery Appellate Tribunal are frivolous, devo....
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....nancial assistance granted by any bank or financial institution and includes a person who becomes borrower of a securitization company or reconstruction company consequent upon acquisition by it of any rights or interest of any bank or financial institution in relation to such financial assistance; 17. Right to appeal (1) Any person (including borrower), aggrieved by any of the measures referred to in sub-section (4) of section 13 taken by the secured creditor or his authorized officer under this Chapter, [may make an application alongwith such fee, as may be prescribed] to the Debts Recovery Tribunal having jurisdiction in the matter within forty-five days from the date on which such measure had been taken: [PROVIDED that differen....
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....rrower or restore the management of the business to the borrower, as the case may be, and pass such order as it may consider appropriate and necessary in relation to any of the recourse taken by the secured creditors under sub-section (4) of section 13. (4) If, the Debts Recovery Tribunal declares the recourse taken by a secured creditor under sub-section (4) of section 13, is in accordance with the provisions of this Act and the rules made thereunder, then, notwithstanding anything contained in any other law for the time being in force, the secured creditor shall be entitled to take recourse to one or more of the measures specified under sub-section (4) of section 13 to recover his secured debt. (5) Any application made under sub-sec....
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....scribed] to the Appellate Tribunal within thirty days from the date of receipt of the order of Debts Recovery Tribunal: [PROVIDED that different fees may be prescribed for filing an appeal by the borrower or by the person other than the borrower:] [PROVIDED FURTHER that no appeal shall be entertained unless the borrower has deposited with the Appellate Tribunal fifty per cent of the amount of debt due from him, as claimed by the secured creditors or determined by the Debts Recovery Tribunal, whichever is less:] PROVIDED ALSO that the Appellate Tribunal may, for the reasons to be recorded in writing, reduce the amount to not less than twenty-five per cent of debt referred to in the second proviso.] (2) Save as otherwise provided ....
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....ed by the Debts Recovery Tribunal, whichever is less. The second proviso relates to the appeal of a borrower, for a third party, who has not obtained any finance from a Bank or a financial institution is under no obligation to pay. 17. The second proviso reads that no appeal is to be entertained, unless the borrower has deposited with Appellate Tribunal 50% of the debt due from him. If the proviso is to be read literally to mean that no appeal, be it of a borrower or a third person, is to be entertained unless the borrower has deposited 50% of the amount of debt due from him, appeals by third persons would in effect and substance, be rendered nugatory for a third person, who would never be able to get his appeal entertained. 18. Signi....