STATE BANK OF INDIA Vs. MITHAN LAL KALRA RICE & GENERAL MILLS

JUDGEMENT

(1.) THIS order will dispose of Appeal No. 434 of 2004 (State Bank of India v. Mithan Lal Kalra Rice & General Mills) and Appeal No. 435 of 2004 (State Bank of India v. Evershine Solvex Pvt. Ltd.) as questions oflaw and facts involved in both the appeals are the same. For the sake of convenience, facts are taken from Appeal No. 434 of 2004 and the parties would be referred by their status in this appeal.

(2.) THE respondents availed the cash credit limit from the appellants to the tune of Rs. 70 lacs and opened account No. 01559/075040. An amount of Rs. 55,53,839 was outstanding against the respondents against this account. The talks of settlement took between the parties and the respondents agreed to make the payment of Rs. 60 lacs in full and final settlement of the claim of the appellants under this account. The respondents had made the offer vide their letter dated 15.2.2001 which was accepted by the appellants in their meeting held on 3.3.2001. This amount of Rs. 60 lacs was to be deposited by the respondent with the appellants within one month from the date of approval of the offer on 3.3.2001 i.e. upto 4.4.2001.

(3.) THE respondents could not deposit the amount by the stipulated date and the appellants vide their letter dated 2.6.2001 informed the respondents that the compromise offer stood cancelled. However, the respondents vide their letter dated 12.7.2001 informed the appellants that the delay was caused as the property of the respondents could not be sold and undertook to make the payment after 19.7.2001. However, by the subsequent letters dated 18.7.2001 and 22.7.2001 respondents again prayed for time to deposit the settled amount and the entire amount of Rs. 60 lacs was paid upto 15.2.2001. The account was closed for which the appellants issued the statement of account.