Kerala High Court Clarifies DRAT’s Discretion on Pre-Deposit Under SARFAESI Act

The Kerala High Court has clarified that the Debt Recovery Appellate Tribunal (DRAT) has the discretion to direct a pre-deposit of up to 50% of the debt due in appeals under Section 18 of the SARFAESI Act, depending on the subject matter.

It clarified that the Debt Recovery Appellate Tribunal (DRAT), while determining the amount to be deposited, shall take into consideration the subject matter of the appeal.

The court emphasised that the tribunal must exercise this discretion judiciously, considering factors like the appellant's financial capacity and the merits of the case, rather than imposing the maximum deposit automatically.

[Glenny C.J. and Anr. v. Authorised Officer, Canara Bank and Anr.]