USHANIL MERCANTILE PRIVET LTD Vs. UCO BANK

JUDGEMENT

(1.) The Order of the Court was as follows : The writ petitioner, in the present case, is the borrower. The respondent Bank is the lender. The respondent Bank obtained a certificate for a sum of Rs. 22,27,416.38p. against the writ petitioner from the Debts Recovery Tribunal. The certificate was issued on September 24, 1997. Subsequently, a settlement camp was held where the parties to this writ petition amicably settled that a consolidated sum of Rs. 16,77,000/- would be payable by the writ petitioner to the respondent Bank within September 30,2002. On the basis of the aforesaid settlement arrived at between the parties, the recovery proceedings were stayed. The writ petitioner, it appears, could not pay the settled amount within the stipulated time. There has thereafter, been further negotiations between the parties taking into consideration the interest for the delay in payment of the settled amount. Parties agreed that a sum of Rs. 22,73,000/- shall be payable instead of the sum of Rs. 16,77,000/-. It appears from the particulars furnished at page 62 of the writ petition that the aforesaid sum has duly been paid. After the amount was paid by the writ petitioner and received by the Bank, an application was made by the Bank before the Debts Recovery Tribunal praying for an order for dropping the recovery proceedings. The aforesaid application made by the Bank was turned down by the Debts Recovery Tribunal by the impugned order dated January 4,2006.

(2.) Both the parties submitted before this Court that they have resolved their disputes. The Bank has agreed to settle the matter. On the basis of such agreement the writ petitioner has paid the entire amount. The view adopted by the Debts Recovery Tribunal was unrealistic and illegal too.

(3.) The Tribunal, it appears, has taken the following view :