Narayan Chandra Ghosh vs Uco Bank & Ors

The High Court of Calcutta held that the Debts Recovery Appellate Tribunal does not have the jurisdiction to exempt a borrower from making a pre-deposit as mandated by the second proviso to Section 18 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The Court clarified that the right to appeal under Section 18(1) is contingent upon the deposit of fifty percent of the debt amount, and the Appellate Tribunal's failure to enforce this condition rendered its order unsustainable. Consequently, the High Court set aside the Appellate Tribunal's order allowing the appeal without the requisite deposit.