In Brief
In this case, the Supreme Court examined whether money deposited as a condition to pursue an appeal before the Debt Recovery Appellate Tribunal (DRAT) under the SARFAESI Act can be treated as a secured asset and retained by the creditor. The Court held that such pre-deposits are not secured assets or secured debts because no security interest is created on them. Therefore, when an appeal ends, the pre-deposit must be refunded to the appellant unless the DRAT has appropriated it towards the borrower's liability, adjusted it with consent, or an attachment exists. The Court remanded the matter to DRAT for reconsideration.
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