CARE FINANCE LIMITED Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) This Regular First Appeal under Section 96 of the Code of Civil Procedure, 1908 (CPC) is filed by the plaintiff in the suit impugning the judgment of the Trial Court dated 22.11.2016 by which the trial court has dismissed the suit filed by the appellant/plaintiff for recovery of Rs.6,95,342/- along with interest at 18% per annum.

(2.) The facts of the case are that the appellant/plaintiff had availed of credit facilities from the respondent/defendant bank and to secure the credit facility granted had created an equitable mortgage of its property in favour of the respondent/defendant. On account of financial crisis, appellant/plaintiff could not meet the financial discipline resulting in the appellant/plaintiff becoming liable to the respondent/defendant for a sum of Rs.1,49,76,216/-. The respondent/defendant filed OA bearing No.19/2002 before the Debt Recovery Tribunal (DRT) for the sum which had then become Rs.1,70,76,216/-. The respondent/defendant also availed of its remedy under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and took possession of mortgaged property at E-05, Sitapura Industrial Area, Tonk Road, Jaipur and thereafter put the property on sale under Section 13(4) of the SARFAESI Act.

(3.) At this stage, the parties appeared before the Lok Adalat for settlement of the disputes. On 12.9.2010, a settlement was entered into between the parties before the Lok Adalat whereby the appellant/plaintiff undertook to pay a sum of Rs.2.2 crores to the respondent/defendant in full and final settlement within one month of the settlement, and which amount was paid. In terms of the settlement, DRT ordered the respondent/defendant to handover possession of the mortgaged property to the appellant/plaintiff, but the appellant/plaintiff was denied possession inasmuch as the respondent/defendant first asked the appellant/plaintiff to pay a further sum of Rs.6,95,342/- incurred as per the respondent/defendant. Finding no option, and since appellant/plaintiff had to resume its business, hence the appellant/plaintiff paid an amount of Rs.6,95,342/- under a protest, and thereafter filed the subject suit for recovery of this amount paid to respondent/defendant.