PUNJAB NATIONAL BANK Vs. SGN TELECOMS LIMITED

JUDGEMENT

(1.) THE loan was availed of by respondent No. 1 from the petitioner with respondents No. 2 to 5 as directors of respondent No. 1 and guarantors of the loan. The term of repayment was not adhered to with the result that the petitioner was constrained to file recovery proceedings before the DRT Chandigarh in the year 2001 for Rs. 2,23,77,060/ -. In order to resolve the dispute, the matter was taken up for consideration in the Lok Adalat on 4.10.2002. A compromise was arrived at inter se the parties before the Lok Adalat whereby the amount was settled at Rs. 111 lacs subject to approval of Board of Directors of the petitioner -bank, as per compromise deed dated 10.9.2002 (Annexure -P -1). The repayment schedule required Rs. 1 lac to be paid within one month from the date of approval and the rest of the amount to be refunded within 18 months from the date of approval as per availability of funds with respondents No. 1 to 5 either in one go or in installments. In case of failure of payment, the petitioner -bank could charge simple interest at 11.5% per annum PLR on the amount outstanding after 18 months.

(2.) THE aforesaid compromise deed was placed before the Lok Adalat and exhibited as Ex. C1 and orders were passed for repayment in terms of said Ex. C1 with title deeds to be returned after compliance of the term of compromise.

(3.) THE aforesaid order was assailed in Civil Writ Petition No. 9372 of 2005 wherein as per order dated 6.7.2005 respondents No. 1 to 5 were directed to deposit an amount of Rs. 25 lacs. Thereafter, the matter was disposed of on 25.10.2005, relegating the parties to a remedy before the Debt Recovery Appellate Tribunal (DRAT).