M/S Csango & Ors.
Vs. Union Bank of India  INSC 723 (13 April 2009)
JURISDICTION CIVIL APPEAL NO. 2378 OF 2009 [Arising out of SLP (C) No.22198 of
2008) M/s CSANGO & Others ... Appellants Versus Union Bank of India ...
Dalveer Bhandari, J.
appeal is directed against the judgment of the High Court of Judicature at
Bombay passed in Writ Petition No.2361 of 2007 on dated 21st August, 2008.
dated 5th September, 2008 of this Court indicates that the appellants had
already paid a sum of Rs.1.26 crores, as directed, as part of one time
settlement, therefore, the Court directed the parties to maintain status quo
until the next date. The interim order was later on directed to be continued
till further orders.
the appeal was taken up for final disposal, the learned counsel appearing for
the parties stated that the parties have amicably settled the matter and the
agreed terms of compromise have been placed on record which have been signed by
the learned counsel for the parties. Learned counsel for the parties have
prayed that this appeal be disposed of in terms of the settlement arrived at by
the parties on 9th April, 2009.
have considered the terms of the settlement. In order to put quietus to the
entire matter, we direct that this appeal be disposed of in accordance with the
terms agreed upon by the parties. The agreed terms are set out as under:- 3
"1. The appellant agrees to pay to the respondent Bank a sum of Rs.3.10
crores (over and above the amounts already paid) in full and final settlement
of all the claims of the respondent Bank.
2. The sum of Rs.3.10
crores will be paid in four installments as follows:
i) Rs.77.5 lakhs
without interest by 9th July, 2009.
ii) Rs.77.5 lakhs
with interest by 9th October, 2009.
iii) Rs.77.5 lakhs
with interest by 9th January, 2010.
iv) Balance Rs.77.5
lakhs with interest by 31st March, 2010.
3. In case there is
any default of payment of any installments or interest accrued, the entire
decreetal amount would be payable as if there is no settlement.
4. Appellant shall
have option to pay entire amount of Rs.3.10 crores on or before 9th July, 2009
without any interest.
5. Attachment of the
assets of the Certificate Debtors made by DRT existing as on today will
continue till the entire amount is paid by the appellants to the respondent.
6. On payment as
above all claims shall stand settled and all proceedings shall abate and
attachments stand vacated.
7. The parties leave
the decision regarding interest to the discretion of this Court."
have carefully examined the terms and conditions of settlement. In the interest
of justice we accept these terms.
We make it clear that
the appellants would be at liberty to pay the entire amount of Rs.3.10 crores
on or before 9th July, 2009 without any interest. In case the entire amount is
not paid on or before 9th July, 2009 then the appellants would pay to the
respondent Bank interest @ 12% per annum. The interest to be computed from 10th
direct the appellants to strictly adhere to the time schedule agreed upon by
further make it clear that in case of any default of payment of any of the
installments or the interest accrued, the entire decreetal amount would be
payable as if there is no settlement between the parties.
further directions are necessary. This appeal is accordingly disposed-of in
terms of the settlement/terms indicated in the preceding paragraphs. In the
facts and circumstances of the case, we direct the parties to bear their own
(Harjit Singh Bedi)