Demand of borrower is legal and tenable and amount deposited will be returned to borrower

Last updated: 27 October 2022

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Quick Summary

The Supreme Court has ruled that a borrower's demand for the return of a deposit made during an appeal under the SARFAESI Act is legal and tenable. The borrower had deposited 50% of the claimed amount to appeal an order, but later withdrew the appeal as the underlying debt recovery tribunal case was resolved. The Court determined that the deposited amount, not being a secured asset or subject to bailment, should be returned to the borrower.

Court :
Appellate Tribunal

Brief :
Borrower has appealed Order under SARFASEI ACT before DRAT and has deposited 50% of the contended sum. The appeal was further withdrawn by the borrower and appealed for refund of deposit amount. The Bank contended it cannot be refunded.

Citation :
Civil Appeal No. 4379 of 2016

Daily Limit Reached