Full Judgment Text
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 2378 OF 2009
[Arising out of SLP (C) No.22198 of 2008)
M/s CSANGO & Others ... Appellants
Versus
Union Bank of India ... Respondent
J U D G M E N T
Dalveer Bhandari, J.
1. Leave granted.
2. This appeal is directed against the judgment of the High
Court of Judicature at Bombay passed in Writ Petition
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No.2361 of 2007 on dated 21 August, 2008.
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3. Order dated 5 September, 2008 of this Court indicates
that the appellants had already paid a sum of Rs.1.26 crores,
as directed, as part of one time settlement, therefore, the
Court directed the parties to maintain status quo until the
next date. The interim order was later on directed to be
continued till further orders.
4. When the appeal was taken up for final disposal, the
learned counsel appearing for the parties stated that the
parties have amicably settled the matter and the agreed terms
of compromise have been placed on record which have been
signed by the learned counsel for the parties. Learned
counsel for the parties have prayed that this appeal be
disposed of in terms of the settlement arrived at by the parties
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on 9 April, 2009.
5. We have considered the terms of the settlement. In order
to put quietus to the entire matter, we direct that this appeal
be disposed of in accordance with the terms agreed upon by
the parties. The agreed terms are set out as under:-
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“1. The appellant agrees to pay to the respondent Bank a
sum of Rs.3.10 crores (over and above the amounts
already paid) in full and final settlement of all the claims
of the respondent Bank.
2. The sum of Rs.3.10 crores will be paid in four
installments as follows:
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i) Rs.77.5 lakhs without interest by 9 July, 2009.
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ii) Rs.77.5 lakhs with interest by 9 October, 2009.
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iii) Rs.77.5 lakhs with interest by 9 January, 2010.
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iv) Balance Rs.77.5 lakhs with interest by 31 March,
2010.
3. In case there is any default of payment of any
installments or interest accrued, the entire decreetal
amount would be payable as if there is no settlement.
4. Appellant shall have option to pay entire amount of
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Rs.3.10 crores on or before 9 July, 2009 without any
interest.
5. Attachment of the assets of the Certificate Debtors made
by DRT existing as on today will continue till the entire
amount is paid by the appellants to the respondent.
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6. On payment as above all claims shall stand settled and all
proceedings shall abate and attachments stand vacated.
7. The parties leave the decision regarding interest to the
discretion of this Court.”
6. We have carefully examined the terms and conditions of
settlement. In the interest of justice we accept these terms.
We make it clear that the appellants would be at liberty to pay
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the entire amount of Rs.3.10 crores on or before 9 July, 2009
without any interest. In case the entire amount is not paid on
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or before 9 July, 2009 then the appellants would pay to the
respondent Bank interest @ 12% per annum. The interest to
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be computed from 10 July, 2009.
7. We direct the appellants to strictly adhere to the time
schedule agreed upon by the appellants.
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8. We further make it clear that in case of any default of
payment of any of the installments or the interest accrued, the
entire decreetal amount would be payable as if there is no
settlement between the parties.
9. No further directions are necessary. This appeal is
accordingly disposed-of in terms of the settlement/terms
indicated in the preceding paragraphs. In the facts and
circumstances of the case, we direct the parties to bear their
own costs.
…….……………………..J.
(Dalveer Bhandari)
…….……………………..J.
(Harjit Singh Bedi)
New Delhi;
April 13, 2009