PRAKASH G. DUDANI Vs. STATE AND ORS.

JUDGEMENT

(1.) JAY Pee Exports Limited had availed of credit facilities under a consortium agreement with Canara Bank and Bank of Baroda. They had executed documents, furnished guarantee bonds, deposited title deeds, securities etc. The two consortium banks initiated proceedings for recovery Rs. 15,47,06,412.7/ - before the Debt Recovery tribunal (DRT). Pursuant to One Time Settlement (OTS) and on payment of Rs. 550 lacs towards full and final settlement, the claims of the banks were settled and the recovery proceedings before the DRT were withdrawn.

(2.) ON 18.10.2005 the Petitioner wrote a letter to the Canara Bank for return of the collateral security in the form of seven Kamdhenu receipts or FDRs for Rs. 3,52,132/. It was stated that as per the terms of the settlement, these FDRs should be returned or the amount be paid. As there was no response, a legal notice dated 11.11.2005 was issued. By their letter dated 7.12.2005, Canara Bank disputed the claim of the petitioner and denied their liability to pay Rs. 3,52,132/ - or release the FDRs in terms of the OTS.

(3.) THE trial court and the Additional Sessions Judge have held that the complaint does not disclose commission of a criminal offence and the dispute between the parties is a civil dispute.