Debts Recovery Tribunals and Appellate Tribunals

MS CHINTAMANI JEWELLERS INDIA PVT LTD vs ABHYUDAYA COOPERATIVE BANK LIMITED on 2 November 2026

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BEFORE THE DEBTS RECOVERY

APPELLATE TRIBUNAL, AT: MUMBAI

Present: Justice Vivek Bharti Sharma, Chairperson

I.A. No. 638/2026 (WoD)

In

Misc. Appeal Diary No. 1860/2026

Between

M/s. Chintamani Jewellers India Pvt. Ltd. & Ors. … Appellant/s

V/s.

The Abhyudaya Co-operative Bank Ltd.

…Respondent/s

-: Order dated: 02/11/2026: -

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1. Present as under: Mr. Rohan Mahadik along with Ms. Bharvi M. Samel & Ms. Nikitha Butty i/b M/s. Juris Partners, Counsel for Applicants. Mr. Nikhil Rajani i/b M/s. V. Deshpande & Co., Counsel for Respondent.

2. Heard on the Application I.A. No. 638/2026 filed in Misc. Appeal (Diary) No. 1860/2026. This application is for waiver to the extent of 25 % as per third proviso to section 18 (1) of the SARFAESI Act.

3. The Learned Counsel for the Applicant/Borrower would submit that in the notice dated 20.11.2025, the Respondent No. 1/Bank stated that as on that date sum of Rs. 1,15,99,592/- with further interest from 01.11.2025 is due and payable by the Applicant/Borrower, therefore, Applicant/Borrower is only required to pay the mandatory pre-deposit as per section 18 of the SARFAESI Act on this amount ; that , the Applicant/Borrower be given a waiver to the extent of 25 % on the ground that the Applicant/Borrower is ready to pay this amount.

The Learned Counsel for the Applicant/Borrower would further submit that as per the Sanction Letter of the property, the loan is of Rs. 4 crores.

4. The Counsel for the Respondent No. 1/Bank files a pursis on behalf of the Respondent No. 1/Bank with copy of the Sale Notice published in newspaper. Taken on record.

5. Per Contra, the Counsel for the Respondent Bank would submit that as per the auction sale notice dated 17.10.2026 published in Free Press Journal the amount outstanding against the Applicant/Borrower is Rs. 3809.85 Lakhs with interest. The Counsel for Respondent Bank would further submit that the notice under challenge in Securitization Application by the Applicant/Borrower is dated 15.07.2026 ; that in para no. 5 of this notice it has been specifically stated that the total outstanding dues as on 29.06.2026 against the Applicant/Borrower is Rs. 3762.23 Lakhs with further interest etc. The Counsel for Respondent Bank would further submit that Applicant/Borrower has not submitted that why the waiver should be granted as no financial difficulty or hardship is argued nor pleaded and no documentary evidence of financial incapacity is placed on record. The Counsel for Respondent Bank would further submit that on sanction letter of the property the loan is of Rs. 4 crores.

6. Considered and perused the record.

7. The perusal of the record would reflect that in the Securitization Application, the Applicant/Borrower has challenged the notice dated 15.07.2026 issued under section 13 (8) of SARFAESI Act, 2002.

8. The perusal of this notice, filed with the grounds of appeal (page no. 140), would reflect that in para 5 of this notice the total outstanding dues are of Rs. 3762.23 Lakhs as on 30.06.2026 together with subsequent interest and other charges.

9. The Counsel for Respondent Bank has stated in its pursis filed today that the secured asset has been put on auction sale for its claim on Rs. 3809.85 Lakhs with further interest from 01.10.2026 for which publication has also been done.

10. The Perusal of the e-auction sale notice dated 17.10.2026 published in Free Press Journal, attached annexed with this pursis, would reflect that at serial no. 40, the amount outstanding is 3809.85 lakhs with further interest from 01.10.2026.

11. As the auction sale has been issued and published therefore, the amount stated in the auction sale shall be the amount on which the compliance as per section 18 of the SARFAESI Act has to be done for entertaining present appeal.

12. The Learned Counsel for the Applicant/Borrower has not submitted that there was any financial hardships or difficulties for grant of waiver on the mandatory pre-deposit of 50 % of this amount.

13. In view of the above discussion on facts and law, this Appellate Tribunal is of considered view that the Applicant/Borrower is not entitled to any waiver as per 3rd proviso to section 18(1) of the SARFAESI Act , consequently , the Applicant/Borrower is directed to deposit 50 % of this amount within a week.

14. Accordingly, this Tribunal directs the Applicants/Borrowers to deposit 50% of ₹3809.85 Lakhs, which comes to ₹19,04,92,500/- on or before 10.11.2026.

15. The amount shall be deposited in the form of a Demand Draft with the Registrar of this Appellate Tribunal.

16. As and when the said amounts are deposited, the same shall be invested in term deposits in the name of the Registrar, DRAT, Mumbai with any nationalised Bank, initially for 13 months, and thereafter to be renewed periodically.

17. With this observation, the I.A. No. 638/2026 is disposed of.

18. On deposit of the amount, the Registry is directed to register this appeal and interlocutory application, if otherwise in order under the rules.

19. If the deposit is made as stated in para 14 above on or before 10.11.2026, list the Appeal on 13.11.2026 for reporting compliance and hearing.

In the event of failure to deposit the said amount till 10.11.2026, the Appeal shall stand dismissed automatically without further reference to this Appellate Tribunal. The Respondent is at liberty to file a reply to the grounds of the Appeal and stay application with an advance copy to the other sides.

Sd/- Chairperson 02.11.2026

VKC-02

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