Pre-deposit of 25% Debt Mandatory Under Section 18(1) SARFAESI Act; No Waiver Without Proof of Hardship

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Full Text of the Document

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....The HC dismissed the petition seeking waiver of the pre-deposit requirement under the third proviso to Section 18(1) of the SARFAESI Act, affirming that the borrower must deposit 25% of the debt, including interest up to the appeal's institution date before the DRAT. The borrower failed to produce evidence negating the classification of the loan as an NPA or establish any financial hardship. Alleged accounting errors and partial payments post-Section 13(2) notice were insufficient to demonstrate a prima facie case or justify waiver. The Court held that reliance on a typographical error in loan documents did not warrant interference with the DRAT's dismissal of the appeal for non-compliance with pre-deposit directions. Exercising discretiona.........