In Brief
A bank appealed challenging the High Court's order requiring it to refund a 50-lakh rupee deposit made by a borrower as a condition for filing an appeal before the Debt Recovery Appellate Tribunal under the SARFAESI Act. The Supreme Court held that the pre-deposit, though required under Section 18, is neither a secured asset nor secured debt. When an appeal is disposed of (whether on merits or by withdrawal), the deposit must be returned to the borrower unless previously appropriated with consent or attached by lawful process. The bank cannot claim a lien over the deposit under general contract law. The Court affirmed the High Court's order and dismissed the appeal, while preserving the bank's right to pursue other recovery remedies.
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