FAQ About Pre-deposit for Preferring an Appeal to Debts Recovery Tribunals Under RDB Act, 1993

Answer: Where an appeal is preferred by any person from whom the amount of debt is due to a bank or a financial institution or a consortium of banks or financial institutions, such appeal shall not be entertained by the Appellate Tribunal unless such person has deposited with the Appellate Tribunal fifty per cent. of the amount of debt so due from him as determined by the Tribunal.

(See Section 21 of RDB Act, 1993)

Answer: Debts Recovery Appellate Tribunal has the power to reduce the amount of pre-deposit to be made for the purpose of filing an appeal to the Debts Recovery Appellate Tribunal from fifty per cent to an amount which shall not be less than twenty five per cent of the amount of debt due.

(See Section 21 Proviso of RDB Act, 1993)

Answer: The pre-deposit has also to be made by a person who is a mere guarantor but has not taken loan himself.

Answer: The pre-deposit has also to be made by a person who is a mere mortgagor but has not taken loan himself.

Answer: The pre-deposit is not required to be made by a person who is neither a borrower nor a guarantor nor a mortgagor, inasmuch as such a person is not liable to repay any debt to be bank and financial institution.

Answer: A tenant or lessee is not required to make any pre-deposit for preferring an appeal to the Debts Recovery Appellate Tribunal .

Answer: A purchaser or intending purchaser of a property is not required to make any pre-deposit for preferring an appeal to the Debts Recovery Appellate Tribunal.

Answer: A Bank or Financial Institution of a property is not required to make any pre-deposit for preferring an appeal to the Debts Recovery Appellate Tribunal.

Answer: Pre-deposit is not required to be made for preferring an appeal to the Debts Recovery Appellate Tribunal against an interim or interlocutory order passed by Debts Recovery Tribunal. According to Section 21 of the RDB Act, 1993 pre-deposit has to be made of fifty per cent, which may be reduced to twenty five per cent, of the amount of debts due from the Appellant, has determined by the Debts Recovery Tribunal under Section 19 of the RDB Act, 1993. In view of the fact that at the stage of passing an interim or interlocutory order by Debts Recovery Tribunal, the debt due from the appellant is not determined by the Debts Recovery Tribunal, the question of making any pre-deposit for preferring an appeal to the Debts Recovery Appellate Tribunal against an interim or interlocutory order passed by Debts Recovery Tribunal, does not arise.