MOHAN METALS Vs. DENA BANK
DEBTS RECOVERY APPELLATE TRIBUNAL
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(1.) ON the proposal given by the appellants for ONe Time Settlement (OTS) of the amount due, the respondent Bank forwarded the minutes of the meeting to the appellants herein by their letter dated 2.9.2005 which runs as under:
As per the discussions we had today at 6.15 p.m. along with General Manager (RML) Shri PL Jakkanwar and Regional Manager, Shri S. Dharamarajan, and Shri G. Thulukkananam, Senior Manager, George Town Branch, Chennai, the following agreement has been reached for settlement of Bank's dues.
Amount agreed to be paid: Rs. 50.00 lakh in total for the OTS out of which-
1. First instalment of Rs. 25.00 lakh has to be paid before 30.9.2005.
(2.) Second instalment of Rs. 25 lakh has to be paid before 31.12.2005.
The said OTS compromiseproposal will be forwarded to Competent Authority at our Head Office, Mumbai for sanction/proposal/approval.
2. It is the contention of the appellant that One Time Settlement (OTS) means the amount offered and agreed by both the parties in full quit of all costs and claims and in the minutes of the meeting referred above, the appellant is not liable to pay any other amount except the amount of Rs. 50 lakh agreed to be paid. That out of the said amount, the appellants have paid Rs. 25 lakh on 3.9.2005, and thereafter, approached the respondent Bank for payment of the balance amount of Rs. 25 lakh and requested the Bank to release the documents. But the respondent Bank refused to release the same and demanded a sum of Rs. 1,17,607/- that being the legal charges along with the OTS, for which the appellants have not agreed. Hence the appellants moved the application IA-64/2006.
The respondent Bank though has not filed the Counter, resisted the application by producing a communication dated 22.11.2005 received from their Head Office at Bombay to collect Rs. 1.16 lakh as legal charges along with Rs. 50 lakh arrived as OTS amount. The respondent Bank, therefore, contended that they cannot release the documents on payment of Rs. 50 lakh.
(3.) THE DRT after hearing both the parties was of the opinion that there is no mention about the additional charges in the OTS and additional charges such as legal charges do not constitute under the OTS Scheme. But however, the communication dated 22.11.2005 sent to the respondent Bank by the Head Office was also taken into consideration and ultimately by striking at a balance, directed the appellants herein to pay a sum of Rs. 50,000/- towards the legal charges along with Rs. 25 lakh, which remains to be paid as per the OTS within the time granted.;
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