Rakesh Kumar Jain, J. - (1.) (Oral) - This petition is directed against the order dated 4.2.2013 by which the property of the petitioners mortgaged with the Bank has been put to auction.
(2.) The facts given to me during the course of hearing are that the petitioners obtained a loan of Rs. 1.12 crore from M/s City Financial Consumer Finance India Limited which has now been taken over by the Kotak Mahindra Bank Limited. The petitioners were to pay instalments of Rs. 1,49,156/- every month for which the respondent had taken post dated cheques. One instalment was paid in cash. The three cheques of the instalments were encashed but the subsequent cheques presented for realisation by the respondent were however, dishonoured. In the month of August 2009, the account of the petitioners was declared Non Performing Asset (NPA) and on 7.8.2009 an Arbitrator was appointed in terms of the agreement between the parties. On 19.9.2009, first settlement was arrived between the parties in pursuance of which the petitioners made the payment of Rs. 16,44,936/- in all and while adding the earlier payments made by way of instalment, the total amount paid by the petitioners was Rs. 21 lacs (Approximately). According to the petitioners, they were not joined in the Arbitration proceedings and the award announced on 30.1.2010 was challenged by way of objections filed under Section 34 of the Arbitration and Conciliation Act, 1996 [for short 'the Act']. The objections were dismissed for non-prosecution/default on 5.9.2012. The petitioner filed an application for recalling the said order on 8.9.2012 but the said application was also dismissed for non-prosecution on 5.1.2014.
(3.) On the other hand, the respondent was executing the award in which the petitioners also participated and filed their objections. In the execution proceedings, the second OTS/settlement was arrived at between the parties in 2012, as per which the petitioner was to pay Rs. 1,04,00,000/- (Rupees One Crore Four Lakh Only). The schedule of the payment of the said amount was as follows: "1st instalment of Rs. 35,00,000 (Rupees Thirty Five lakh Only) to be paid on or before (due date) 20-June-2012. 2nd instalment of Rs. 10,00,000 (Rupees Ten Lakh only) to be paid on or before (due date) 20-Jul-2012 3rd instalment of Rs. 5,00,000 (Rupees Five Lakh only) to be paid on or before (due date) 20-Aug-2012 4th instalment of Rs. 5,00,000 (Rupees Five Lakh only) to be paid on or before (due date) 20-Sep-2012 5th instalment of Rs. 5,00,000 (Rupees Five Lakh only) to be paid on or before (due date) 20-Oct-2012 6th instalment of Rs. 15,00,000 (Rupees Fifteen Lakh only) to be paid on or before (due date) 20-11-2012. 7th instalment of Rs. 29,00,000 (Rupees Twenty Nine Lakh only) to be paid on or before (due date) 20-Dec-2012.";