#DRAT

Bombay High Court rules that the 50% pre-deposit requirement under Section 18(1) of the SARFAESI Act applies universally to all appeals against DRT orders, including those challenging condonation of delay. The judgment overturns prior DRAT orders waiving the deposit and declares earlier contrary rulings per incuriam, reinforcing strict compliance with statutory pre-deposit norms for borrowers and secured creditors.

The Bombay High Court ruled that a prolonged vacancy in the DRAT Chairperson’s office cannot be used to nullify interim protection granted to compliant appellants who have fully discharged pre-deposit obligations. This upholds the principle that procedural delays caused by administrative failure must not prejudice parties acting in good faith, reinforcing natural justice in debt recovery appeals.

Bombay High Court rules that Debt Recovery Appellate Tribunals cannot reject stay applications on grounds of non-deposit without first adjudicating pending exemption requests. The ruling reinforces natural justice principles, ensuring borrowers retain interim protection during appeal proceedings.