In Brief
Kotak Mahindra Bank acquired a debt from IFCI Ltd. against respondents who defaulted on a Rs.145 crore loan. The DRT issued a recovery certificate for the remaining amount. When respondents appealed to the DRAT, they sought waiver of the mandatory 50% pre-deposit required under Section 21 of the Recovery of Debts and Bankruptcy Act, 1993, citing substantial land acquisition compensation already received. The High Court granted complete waiver. The Supreme Court held that pre-deposit is mandatory with no power for complete waiver; only reduction from 50% to minimum 25% is permissible. The Court modified the DRAT order to require 25% pre-deposit and set aside the High Court's order granting full waiver.
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