O.P.ARORA Vs. SYNDICATE BANK

JUDGEMENT

(1.) PETITIONER O.P.Arora and his son Vishal Arora constituted a partnership under the name and style V.S.A.Ledermode. The partnership firm availed various credit facilities from Syndicate Bank. The account became sticky and the bank filed a recovery proceedings before the Debt Recovery Tribunal claiming a sum of Rs.4,19,80,000.00 as on 9.1.1998 when the claim was filed.

(2.) VISHAL Arora offered a settlement which was accepted by the bank and as per the OTS dated 31.3.2000 the bank agreed to receive Rs.2.45 crores in full and final settlement of its dues. Parties agreed to the amount being repaid with agreed rate of interest in installments. The settlement was not honoured.

(3.) O .P.Arora i.e. the petitioner filed an appeal against the consent decree alleging that he had not consented to the settlement which his son had entered into with the bank and urged that the decree could be enforced only against his son and the partnership firm and not him. The appeal succeeded and the matter was remanded to the Debt Recovery Tribunal for recording evidence and passing a decree as required by law and needless to state this order was only to the benefit of O.P.Arora. As regards his son and the partnership firm the settlement decree stood final.