RAJINDER & CO Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) This petition has been filed for a direction that guidelines of the Reserve Bank of India dated 29.1.2003 and 29.7.2003 be given effect to and the respondent-bank should not proceed against the petitioner for recovery.

(2.) Case set out by the petitioner is that certain amounts were due against the petitioner in respect of hypothecation limit with the bank. The bank filed a petition under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. Ex parte certificate for recovery of Rs. 15,82,515/- alongwith future interest at the rate of 18% per annum with quarterly rests with effect from April 1, 1998 was obtained. The petitioner filed application under Order 9 Rule 13 CPC for setting aside ex parte recovery certificate. The said application was dismissed for non-prosecution. The bank took out execution proceedings. Thereafter, on 28.9.2002, a settlement was arrived at before the Lok Adalat, whereby it was agreed that the petitioner will pay Rs. 16.75 lacs in full and final settlement. A sum of Rs. 4.75 lacs was to be paid on or before 30.11.2002 and the remaining amount was payable in installments of Rs. 1 lac per month alongwith simple interest at the rate of 12% per annum w.e.f 28.9.2002 and in default thereof, whole of the amount as per decree was payable. The petitioner defaulted and, thus, whole amount became payable. The petitioner, thereafter, deposited a sum of Rs. 15 lacs after making a statement in this Court on 2.8.2005 and further offered to pay another sum of Rs. 5.86 lacs by way of interest in full and final settlement. On May 15, 2006, the petitioner stated that there is possibility of a compromise between the parties and the matter was adjourned accordingly.

(3.) However, it was stated by the learned counsel for the bank that settlement could not be arrived at.