In Brief
Union Bank of India challenged a High Court order that dispensed with the pre-deposit requirement in an appeal under the SARFAESI Act. The Supreme Court held that while Section 18 of the SARFAESI Act mandates deposit of 50% of the debt amount as a condition for appeal, the DRAT possesses discretionary power to reduce or waive this requirement based on recorded reasons. The Court allowed the bank's appeal and directed that the matter proceed to the DRAT for merit-based adjudication without prejudgment on the pre-deposit issue.
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