S.D. BHOSKAR AND CO. AND ANR Vs. BANK OF BARODA AND ANR.

Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 11916-11917 of 2016, Judgment Date: Dec 07, 2016

                                                              NON-REPORTABLE

                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION

                    CIVIL APPEAL NO. 11916-11917 OF 2016
          [ @ SPECIAL LEAVE PETITION (C) NOS. 36266-36267 OF 2015]


      S.D. BHOSKAR AND CO. AND ANR                  Appellant(s)

                                  VERSUS

      BANK OF BARODA AND ANR.                      Respondent(s)

                               J U D G M E N T

KURIAN, J.

1.    Leave granted.

2.    The appellants are aggrieved by the direction given by the High  Court
to make a pre-deposit before the Debts Recovery  Appellate  Tribunal  (DRAT)
under the SARFAESI Act, 2002.

3.    According to the appellants, they had already approached the DRAT  and
had deposited Rs. 12.50 Lakhs in respect of the same  subject  matter,  when
proceedings were initiated under the Recovery of  Debts  Due  to  Banks  and
Financial Institutions Act, 1993 and hence, it  will  be  highly  unjust  to
insist for a pre-deposit before the DRAT in proceedings under  the  SARFAESI
Act.

4.    Though both the sides are prepared to address arguments on the  issue,
having regard to the fact that the appeals are pending before the  DRAT,  we
do not think that we should address the question of law as such.

5.    Therefore, leaving the question of law open and in the peculiar  facts
of this case, we dispose of these appeals and direct  the  DRAT,  Mumbai  to
dispose of Appeal Nos. 296 of 2006 and 139 of 2011 expeditiously and at  any
rate, within a period of six months from today.

6.    We direct the parties to cooperate in the expeditious disposal of  the
appeals.  The interim order  granted  by  this  Court  staying  the  further
deposit under the SARFAESI Act  will  continue  till  the  disposal  of  the
appeals by the  DRAT.   Further,  there  shall  be  no  coercive  steps  for
recovery till the appeals are disposed of.
      No costs.
                                                   .......................J.
                                                           [ KURIAN JOSEPH ]

                                                   .......................J.
                                                   [ ROHINTON FALI NARIMAN ]

      New Delhi;
      December 07, 2016.