Section 18B of the SARFAESI Act, 2002: Appeal to High Court in Certain Cases
Section 18B deals with appeals to the High Court from orders of the District Judge under Section 17A in the special statutory framework originally framed for borrowers residing in Jammu and Kashmir. It sets out the appeal period and mandatory debt pre-deposit.
Text of Section 18B
Any borrower residing in the State of Jammu and Kashmir and aggrieved by any order made by the Court of District Judge under section 17A may prefer an appeal, to the High Court having jurisdiction over such Court, within thirty days from the date of receipt of the order of the Court of District Judge:
Provided that no appeal shall be preferred unless the borrower has deposited, with the Jammu and Kashmir High Court, fifty per cent. of the amount of the debt due from him as claimed by the secured creditor or determined by the Court of District Judge, whichever is less:
Provided further that the High Court may, for the reasons to be recorded in writing, reduce the amount to not less than twenty-five per cent. of the debt referred to in the first proviso.
Meaning and scope of Section 18B
Who may appeal?
The provision addresses a borrower covered by Section 17A who is aggrieved by an order of the Court of District Judge. It is a special appellate mechanism rather than the general route for challenging measures of secured creditors under the Act.
Time limit: 30 days
The statutory appeal period is thirty days from receipt of the District Judge's order. Parties should identify the date of receipt and examine the applicable law and current procedural position before filing.
Pre-deposit: 50%, reducible to 25%
Ordinarily, the borrower must deposit 50% of the lesser of the debt claimed by the secured creditor and the debt determined by the District Judge. The High Court may, by recording reasons in writing, reduce that amount, but not below 25% of the relevant debt.
Relationship with Sections 17A, 17 and 18
Section 17A provides the special District Judge application mechanism referred to by Section 18B. By contrast, Section 17 generally provides for applications before the Debts Recovery Tribunal against measures under Section 13(4), while Section 18 governs appeals to the Debts Recovery Appellate Tribunal.
Jammu and Kashmir: present-day legal context
The references to the "State of Jammu and Kashmir" in this provision reflect its legislative history. Following the Jammu and Kashmir Reorganisation Act, 2019, the constitutional and territorial framework changed. For a current dispute, the application of Sections 17A and 18B must therefore be checked against the legislation as presently in force, applicable adaptation or repeal provisions, and binding judicial decisions. The historical wording alone should not be treated as confirmation that this special forum remains available in every present-day case.