SPACEVISION IMPEX PVT LTD Vs. VIJAYA BANK

JUDGEMENT

(1.) THE petitioner in the instant case, was granted credit facilities by the respondent bank on the 8th of December, 2004 which were in the nature of packing credit limit of Rs. 300 lakhs subject to execution of the requisite documents including the deed of hypothecation of goods. This limit was enhanced on 22nd February, 2005 from Rs. 300 lakhs to 500 lakhs again against the execution of appropriate documents. As the petitioner failed to maintain financial discipline, the respondent-bank claimed a sum of Rs. 2,66,65,849/-with interest thereon with effect from 1st January, 2007. At this stage, the petitioner requested the respondent for an amicable resolution of the disputes by a written proposal dated 6th February, 2007.

(2.) IN order to amicably resolve the disputes, the respondent accepted the compromise proposal on terms and conditions set out in the letter dated 10th march, 2007 whereby the respondent agreed to receive the total amount of Rs. 249 lakhs in full and final settlement of its claims. An amount equivalent to 25% of the compromise amount being a sum of Rs. 62 lakhs was required to be paid on or before 9th of April, 2007; a further amount of Rs. 47 lakhs was to be paid on or before the 23rd April, 2007; while the balance amount of Rs. 140 lakhs was payable on the 7th of June, 2007.

(3.) THE petitioner has contended that despite the settlement, certain litigation was mala fide commenced by the bank against the petitioner which came to be dismissed only on the 20th September, 2007. By a letter dated 20th March, 2007, the respondent modified the payment schedule stipulating that the first installment of Rs. 62 lakhs and the second of Rs. 47 lakhs be paid within 90 days of communication by the respondent on the acceptance of the compromise. The final balance of Rs. 140 lakhs was to be paid within 90 days of communication of the letter from the respondents.