BANK OF BARODA Vs. MRS V SANTHI

JUDGEMENT

(1.) FINAL order was passed in the O.A. 1507/2001 on 7.1.2002. The respondent defendants filed IA 166/2003 praying the Tribunal to record full settlement of decree passed in O.A. 1507/2001 and subsequently direct the Bank to discharge the mortgage and to release the original document of the title deeds in respect of the mortgaged property. The defendants also filed IA 167/2003 to set aside the order of attachment after recording full settlement of the decree. The PO, DRTII, Chennai allowed those petitions. Aggrieved against that order, theappellant Bank has preferred these appeals.

(2.) The Counsel for the appellant Bank submits that compromise was effected for the two Original Applications (O.As.) pending before the DRT, i.e. O.A. 1507/2001 and O.A. 912/2001 and only for settlement of both the matters, the defendants were allowed to sell the property and settle the matters and the defendants now cannot say that they will settle only one matter and the other matter they won't settle and pay the sale proceeds of the mortgaged property and both the matters pending have to be settled and then only the settlement is valid, otherwise the settlement is not valid and the compromise order cannot be passed.

(3.) ON a perusal of the letters given by the defendants, it appears that the defendants have sought for settlement of the O.As. separately as per the terms set out therein and the defendants have never sought for clubbing both the O.As. and for settling that matter. In the letter given by the defendants in O.A. 953/1999 (New No. O.A. 912/2001) i.e. Gilt Securities Pvt. Ltd., the defendants have clearly stated that they are raising their offer to Rs. 42 lakhs as full and final settlement of the O.A. 953/1999 (New No. O.A. 912/2001) before the DRT and the amount will be the maximum they can offer and no further improvement is possible. So, this letter clearly refers that for full and final settlement of the claim in that particular O.A. only that letter was sent. Similarly, for the other matter also, the defendants appear to have given a separate letter, but that letter is not produced. The Bank has given reply on 25.11.2002 for both the matters separately. For the company M/s. Abhirami Investments and Mrs. V. Shanthi, the Bank has accepted Rs. 45 lakhs in full and final settlement against the dues and the amount of Rs. 45 lakhs to be paid within 90 days of their advising sanction i.e. before 22.2.2003 and if the borrower has not paid the amount before 22.2.2003, further period of 30 days would be given, provided the party agrees to pay interest at 12% simple from 23.2.2003 to 24.3.2003 and beyond which the compromise will be treated as cancelled. Similarly, for the other O. A. which relates to M/s. Gilt Securities P. Ltd. and M/s. Krishna & Co., the Bank has accepted the offer of Rs: 45 lakhs in full and final settlement against their dues and Rs. 1.50 lakhs already paid is kept in No lien account and the balance of Rs. 43,50,000/- to be paid within 90 days of their advising sanction i.e. before 22.2.2003 and also with the further condition that if the amount is not paid before 22.2.2003, a further period of 30 days may be granted if the party agrees to pay interest at 12% simple from 23.2.2003 to 24.3.2003 and beyond which the compromise will be treated as cancelled.