Girish Chandra Gupta, J. - (1.) This appeal is directed against an order dated 11.4.2001 passed by a learned Single Judge of this Court allowing the writ petition. Facts necessary for disposal of this appeal are as follows : A term loan for a sum of Rs. 15 lakhs was sanctioned and disbursed pursuant to the letter of sanction dated 17.6.1992 by the West Bengal Financial Corporation (hereinafter referred to as the Corporation) to the writ petitioners. The writ petitioners failed to repay the loan. On 11.7.1996, the Corporation issued a notice under Section 29 of the State Financial Corporation Act, 1951. Notional possession was taken over on 14.8.1996. Case of the writ petitioners is that the Corporation in view of the negotiations between the parties subsequently released possession. After protracted negotiations between the parties, a one time settlement was agreed to by the Corporation by its letter dated 24.3.2000 by which the Corporation agreed, to accept a sum of Rs. 24 lakhs in full and final settlement of its claim. The text of the letter dated 24.3.2000 is set out herein-below "Dear Sir, Kindly note that our appropriate authority has reduced the amount for full and final settlement of your accounts to Rs. 24 lakhs (Rupees twenty four lakhs) only to be paid in the following manner: 1. Rs. 10.00 lakhs ...... to be paid latest by 31.3.2000. 2. Rs. 14.00 lakhs ......to be paid within 6 months w.e.f...........April 2000 by monthly instalments. Rs. 24.00 lakhs. You are requested to ignore our earlier letter bearing No. Suri/SM/GR/ADV/HP/3002 dated 15.3.2000 and to stick to the aforesaid repayment schedule. Kindly acknowledge receipt and pay the first instalment within the due date."
(2.) As on 24.3.2000, the total outstanding dues of the Corporation were Rs. 41.82 lakhs. The mortgaged assets were valued at Rs. 46.78 lakhs by a Government approved valuer in March 2000.
(3.) The writ petitioners did not pay the sum of Rs. 10 lakhs by 31.3.2000 as stipulated in the letter dated 2.1.3.2000 which is set out, hereinabove, or at all. The writ petitioners are stated to have paid a sum of Rs. 50,000/-. The Corporation in the circumstances by its letter dated 6.4.2000 (inadvertently written as 6.32.000) communicated to the writ petitioners that the one time settlement contained in the letter dated 24.3.2000 stood withdrawn since the writ petitioners had failed to act in terms thereof. The writ petitioners did not reply to this letter.;