Kumar Aluminium Ltd vs Asset Reconstruction Company India Ltd ...

The Supreme Court held that under Section 18(1) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, a pre-deposit made for maintaining an appeal is not a secured asset or secured debt. The Court ruled that upon disposal of the appeal, the pre-deposit must be refunded unless certain conditions are met, such as prior appropriation by the Appellate Tribunal. The Court set aside the High Court's judgment and the DRAT's order, remitting the matter for fresh consideration.