Debts Recovery Tribunals and Appellate Tribunals

S R Educational and Charitable Trust and others vs Asset Reconstruction company India Ltd Rep by its A O Mumbai on 10 September 2026

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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

Misc Appl 87/2026 (Pre Deposit refund) in M.A(S.A):2/2026

M/s S R Educational & Charitable Trust & 3 ors V/S Asset Reconstruction Company India Ltd

10/09/2026

Learned Counsel for both sides are present.

This application is filed for refund of pre-deposit of Rs.9,12,18,874/- deposited at the time of entertaining the appeal in MA (SA) 2 of 2026.

Learned Counsel for the Petitioners/Appellants submitted that as per the order dated 11.7.2025, passed in IA 825 of 2025, Petitioners made a pre-deposit of Rs.9,12,28,874/-. Thereafter, this appeal was numbered as MA (SA) 2 of 2026. This appeal was disposed on 23.3.2026.

SA No. 63 of 2025 is dismissed and against dismissal order Petitioners filed appeal AIR No.2370 of 2026 and it is pending for consideration. Petitioners requires this amount for making the pre-deposit in the appeal in AIR 2370 of 2026. Thus, this application.

Learned Counsel for the Respondent Financial Institution seriously objected for refund of pre-deposit. It is his submission that as of now the due recoverable from the Petitioners is Rs.239.00 crores plus. No amount is paid towards the discharge of the loan amount, and requests that this amount may be paid to the Respondent Bank. He also suggested if the Petitioners proposes a settlement offer, that will be considered by the Bank.

In reply, Learned Counsel for the Petitioners submitted that this amount is required for making pre-deposit in the other appeal and, therefore, at the moment, the settlement proposal cannot be submitted.

Considered the rival submissions and perused the records.

Pre-deposit is made only for entertaining the appeal. Pre-deposit is neither a secured debt nor a security interest is created on this amount. Till now, there is no order obtained under Section 13(10) of the SARFAESI Act, 2002 for apportioning this amount. Therefore, the Petitioners are entitled for this refund of pre-deposit, along with accrued interest if any.

Therefore, the objection of the Learned Counsel for the Respondent Bank is rejected.

Miscellaneous Application 87/2026 (Pre-deposit refund) is allowed.

Registry is directed to refund the pre-deposit amount, along with accrued interest, if any, to the 2nd Petitioner, as prayed for in the application filed for refund of pre- deposit.

Sd/-

Chairperson

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