DRAT Dismisses Appeal against Federal Bank due to failure in pre-depositing 25% of Total Amount [Read Order]
The period given by the tribunal to comply with the predeposit was of seven days , which had expired on 29.08.2025 and the matter was posted to 01.09.2025 for reporting compliance.
Federal - bank - Taxscan
Federal - bank - Taxscan
In a recent case, the Debt Recovery Appellate Tribunal (DRAT) Chennai dismissed the appeal filed against the Federal Bank Ltd, on finding that the appellant failed to comply with the order by the tribunal directing to deposit 25 % of the total amount as a predeposit.
The period given by the tribunal to comply with the predeposit was of seven days , which had expired on 29.08.2025 and the matter was posted to 01.09.2025 for reporting compliance.
Joseph, the appellant, challenged the Debt Recovery Tribunal (DRT) order, which was ruled in favour of the federal bank. The matter came up before the appellate tribunal for reporting compliance of statutory deposit.
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The Tribunal, vide its order dated 22.08.2025, directed the petitioners/appellants to make pre-deposit of 25% of Rs.25,00,000/- within a period of seven days from 22.08.2025 and the said period of seven days had expired on 29.08.2025 and the matter was posted to 01.09.2025 for reporting compliance.
It was reported by the Office that pre-deposit, as ordered by this Tribunal on 22.08.2025 is not complied with.
Under the said circumstances,the single bench of Justice G. Chandrasekharan , Chairperson dismissed the application in IA 427/2025 (Waiver) for non compliance of statutory deposit, resulting in rejection of Appeal in MA (SA) 8/2025, by giving effect to the conditional order dated 22.08.2025.
The pre-deposit is a mandatory condition for the DRAT to hear an appeal. The DRAT has limited discretion to reduce this amount, but cannot waive it entirely, and failure to make the deposit leads to the dismissal of the appeal on technical grounds.
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