In Brief
Union Bank challenged a Bombay High Court order that directed an appellant to appeal to the Debt Recovery Appellate Tribunal without making a mandatory pre-deposit of 50% of the debt due, as required by Section 18 of the SARFAESI Act. The Supreme Court held that Section 18 imposes an absolute bar to entertaining an appeal unless the borrower (including guarantors and mortgagors) deposits the required amount or the reduced amount the tribunal permits. The Court set aside the High Court's order, ruling that the High Court cannot issue directions contrary to statutory law and must follow mandatory procedural requirements. The merits remain for the tribunal to decide.
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