Whether while calculating the amount of ‘debt due’, the amount deposited by auction purchaser is required to be adjusted towards the amount of pre-deposit to be deposited by borrower under Section 18 of the SARFAESI Act? – M/s Sidha Neelkanth Paper Industries Pvt. Ltd. & Another Vs. Prudent ARC Ltd. & Others – Supreme Court
In this case, the short question which is posed for the consideration is, “whether, while calculating the amount to be deposited as pre-deposit under Section 18 of the SARFAESI Act, 50% of which amount the borrower is required to deposit as pre-deposit and whether while calculating the amount of “debt due”, the amount deposited by the auction purchaser on purchase of the secured assets is required to be adjusted and/or appropriated towards the amount of pre-deposit to be deposited by the borrower under Section 18 of the SARFAESI Act?” Another question would be, “whether the “debt due” under Section 18 of the SARFAESI Act would include the liability + interest?