CENTRAL BANK OF INDIA Vs. PARWATI WADHWANI

JUDGEMENT

(1.) HEARD the arguments of both the parties.

(2.) It is the contention of the Bank that there has been breach of compromise agreement by the defendants by way of default in payment and, therefore, the certificate for the original debt as per the default clause should be issued. Learned Counsel for the defendant Nos. 1 and 2 repeatedly requested for extension of time upto 30.6.2003 to enable them to pay the balance outstanding compromise amount along with interest as per Para 3 of the compromise agreement.

(3.) AS regards the merit of the case it is an admitted fact that the defendants have paid Rs. 1 lacinthree instalments after the date of breach i.e. 30.6.2002. The Bank has contended in their counter that the said amount has been accepted by them without prejudice to their petition dated 24.10.2002. Defendants have filed affidavit with contradictory contention that Bank has accepted the aforesaid compromise instalments after the date of breach without any reservation. The Bank could not place any documents to show that the said instalments have been received by them after the date of breach without prejudice to their rights and contentions. Admittedly, no notice was communicated to the defendants revealing such intention. It was held in AIR 1917 Patna 82, that "acceptance of payments after the expiry of the time fixed operates as a waiver of limitation as to time in the contract".