MAHESH BHARATHAN Vs. BANK OF BARODA AND ORS

JUDGEMENT

(1.) The Petitioner has come up with the present Writ Petition seeking a direction to the Respondents to return the Schedule Mentioned Shares to him.

(2.) According to the Petitioner, who is the Proprietor of M/s. C.R. Bharathan & Co., he availed Overdraft facilities from the Respondent/Bank in the year 1996 for the purpose of business operations of the Proprietary concern and for the facility availed by him, he had executed necessary documents as security and by Letters dated 28.06.1998 and 12.02.1999, he had pledged several collateral securities with the Respondent/Bank, including 200 shares of Reliance Industries. The Respondent/Bank has accepted and acknowledged the same.

(3.) While so, as a result of Stock scam in the year 2000, the Petitioner suffered huge loss in the business and he was unable to clear the outstanding dues on the said account. Consequently, the Respondent/Bank initiated recovery proceedings in O.A. No. 2410 of 2001 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (in short 'RDDB & FI Act) before the Debts Recovery Tribunal, for a total sum of Rs. 96,33,180.63/- with future interest @ 17% per annum. The Debts Recovery Tribunal, by an order dated 25.05.2007 allowed the above Original Application and the same was confirmed on appeal filed by persons arrayed as Guarantor in the proceedings. In the meantime, the Petitioner entered into discussions with the 3rd Respondent/Assets Recovery Branch of Bank of Baroda and had suggested One Time Settlement of the entire dues. The Petitioner and the Respondent/Bank agreed to One Time Settlement of the outstanding amount of Rs. 49 lakhs and the Petitioner paid the entire amount in instalments.