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Legal representative of deceased guarantor liable to make pre-deposits u/s. 21 of RDB Act

Case Law Details

TaxGuru Citation
2025 taxguru.in 6614
Case Name
Suman Srivastava Vs Union Bank of India & Ors (Delhi High Court)
Date of Judgement/Order
Only available for paid members
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Suman Srivastava Vs Union Bank of India & Ors (Delhi High Court)

Delhi High Court held that liability of deceased guarantor to repay debt shall fall upon legal representative. Hence, petitioner being legal representative of deceased guarantor is liable to make pre-deposits as envisaged in section 21 of the Recovery and Debts and Bankruptcy Act, 1993 [RDB Act].

Facts- The Petitioner has invoked the Writ jurisdiction of this Court under Article 226 and 227 of the Constitution of India against the observations and directions passed by the Debt Recovery Appellate Tribunal (DRAT) vide judgment dated 28.02.2025; as well as against the observations and directions passed by the Debt Recovery Tribunal (DRT) vide common judgment dated 14.02.2025.

The DRAT vide the impugned Judgment has refused to entertain the appeal without pre-deposit as mandated under Section 21 of the Recovery of Debts And Bankruptcy Act, 1993.

The Petitioner states that the Petitioner was neither the borrower of the credit facilities from Respondent No. 1 nor any debt was due to be realized from the Petitioner. Therefore, she is not liable to make any pre-deposit either before the DRT under Section 30-A of the RDB Act while preferring Appeal No. 1 of 2025 or before the DRAT under Section 21 of the RDB Act in Misc. Appeal No. 39 and 40 of 2025.

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