Section 18 of the SARFAESI Act is mandatory for appeals to DRAT, irrespective of whether the order challenged is final or procedural.
Section 18(1) of SARFAESI Act – Pre-deposit – Impugned Procedural Order and Not Final Order
By the order dated 29.2.2024, the DRAT directed the petitioner to make pre-deposit to entertain the appeal against the common order dated 7.10.2022 of DRT on two applications – for amendment to implead the auction purchaser and another to bring subsequent facts on the record as also condonation of the delay in such application.
Respondent No.1 Bank had issued notice dated 13.2.2017 under Section 13(2) of SARFAESI Act to the petitioner and the respondent no.3 on account of default of respondent no.3 in payment of its dues.
The petitioner disputed the notice. The petitioner filed SA under Section 17 before the DRT against the respondents.
In the meanwhile, the respondent no.1 Bank sold the said property and sale certificate in favour of the respondent no.5 auction purchaser, was issued.
The petitioner filed applications – to implead the respondent no.5 and to bring further facts & subsequent events on record.
HELD that Section 18 uses the phrase “any order” which covers both final and interlocutory orders.
Bombay HC Reaffirms Pre-deposit requirement under Section 18 SARFAESI Act for all – final and interim orders.
A mortgagor falls in the definition of “borrower” under Section 2(1)(f) of the SARFAESI Act.
Pre-deposit to entertain DRAT appeal is mandatory to defer frivolous appeals and secure creditor rights.
Section 18 of the SARFAESI Act is mandatory for appeals to DRAT, irrespective of whether the order challenged is final or procedural.
Judgment dated 4.2.2026 of the High Court of Bombay in W.P.No.3929 of 2024 of M/s Sunshine Builders and Developers Vs. HDFC Bank and others
