Summary
On the parties’ broad consensus, the Court arranged a further Rs.5 crore deposit and permitted specified withdrawals while the DRT decided the disputed debt-discharge appeal. The share attachment continued, but further recovery proceedings were stayed pending the DRT’s time-bound decision. Withdrawals remained subject to the appeal’s outcome, with refund of any excess if ordered in the appellant’s favour. The Court left legal questions open and did not decide whether the debt had been discharged.
Issues
- What interim deposit, withdrawal and recovery arrangements should govern the pending appeal concerning alleged discharge of the debt.
Held
- The directions rested on broad consensus and preserved both sides’ rights in Appeal No.1/2020. The disputed assertion that the debt had already been paid was left for the DRT. (¶¶ 5, 6, 7, 8, 9)
- The first appellant was to deposit a further Rs.5 crore with the DRT within four weeks. The first respondent could withdraw that amount, the Rs.1.53 crore pre-deposit with accrued interest, and Rs.25 lakh held by the Recovery Officer, all subject to the appeal’s ultimate outcome. (¶¶ 9(a), 9(b), 9(c), 9(d))
- If the first appellant succeeded and an appellate order required repayment, the respondents were to return any excess amount within four weeks. The DRT was directed to decide the appeal on its merits within eight weeks, with a copy of this order placed before it within one week. (¶¶ 9(d), 9(e), 9(f))
- The existing share attachment continued until disposal of the appeal, while further recovery proceedings were stayed for that adjudication. Questions of law remained open, and the creditor’s DRAT appeal concerning the pre-deposit was also disposed of. (¶¶ 9(g), 9(h), 9(i))
Result
Appeal disposed of on the recorded deposit, withdrawal, repayment and interim-protection terms. DRT directed to decide Appeal No.1/2020 within eight weeks; further recovery stayed meanwhile and share attachment continued. Related pre-deposit appeal and pending applications disposed of; legal questions kept open.