CENTRAL BANK OF INDIA Vs. PREMIER PAPER PRODUCTS
DEBTS RECOVERY APPELLATE TRIBUNAL
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Pratibha Upasani, -
(1.) BANK filed suit OS No. 454/1995 in the Sub-Court, Coimbatore, in the year 1995 which came to be transferred to DRT, Chennai, upon the establishment of DRTs under the RDDB & FI Act, 1993 and again re-transferred to DRT, Coimbatore, and re-numbered as TA No. 1458/2002.
(2.) This appeal is filed by the appellant/original applicant-Central Bank of India being aggrieved by the judgment and order dated 25.2.2004 passed by the learned Presiding Officer of DRT, Coimbatore in IA-474/2003 in TA-1458/2002. By the impugned Order the learned Presiding Officer allowed the IA-474/2003 taken out by the defendants and disposed of finally the TA No. 1458/2002 in view of the direction given by him in the IA.
Few facts which are required to be stated are as follows:
Original Suit OS No. 454/1995 was filed by the Bank against four defendants for recovery of amount to the tune of Rs. 4,27,16,228.77 p. payable by the defendants to the applicant Bank for granting certain facilities to the defendants. The defendants executed various security documents on several dates. The defendants created mortgage by deposit of their title deeds on their properties with intent to create equitable mortgage as a security for due return of the loans availed by the defendant No. 1 firm and its partners. Since the defendants did not regularise their account the suit as mentioned above, came to be filed by the Bank. During the pendency of the proceedings, at one point of time, the defendants had given a proposal for settling the claim by offering Rs. 464 lakhs but the settlement proposal did not come through. One more attempt for settlement also failed. Thereafter, the Reserve Bank of India came out with certain guidelines for settlement of NPA accounts. In pursuance to the said guidelines the defendants submitted a revised proposal offering Rs. 317.73 lakhs in full and final settlement of the Bank's claim. The proposal of the defendants was not accepted by the Bank and they were asked to improve their offer. A revised offer was made of Rs. 326.88 lakhs. However, the revised proposal is still pending. As per the Bank's case, even that offer made by the respondents was subsequently withdrawn by them and another revised proposal was given by them on 30.4.2003 offering Rs. 317.73 lakhs and to show their bona fides, deposited Rs. 70 lakhs plus Rs. 15 lakhs. The said amount of Rs. 70 lakhs was since withdrawn before the impugned order dated 25.4.2004 came to be passed by the learned Presiding Officer of DRT, Coimbatore.
(3.) WHILE the OA was still pending, the defendants made an application being IA No. 474/2003 to the DRT praying for a declaration that they were entitled to the benefits of the RBI circular/guidelines and praying that the applicant Bank be compelled to accept the offer made by them of Rs. 317.73 lakhs under the One Time Settlement (OTS) as per the Scheme of RBI.;
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