Horizon Exports Vs. Debt Recovery Appellate Tribunal - Court Judgment

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED:

27. 2.2014 Coram: THE HONOURABLE MR.JUSTICE M.JAICHANDREN and THE HONOURABLE MR.JUSTICE K.KALYANASUNDARAM W.P.No.23488 of 2012, C.R.P.4099 of 2012 and C.R.P.No.4100 of 2012 and M.P.No.1 of 2013, M.P.No.1 of 2012 and M.P.No.2 of 2012 and M.P.No.1 of 2012 W.P.No.23488 of 2012:

1. M/S. HORIZON EXPORTS REP. BY ITS PROPRIETOR MR. A.M.S.KANNAN NO.27 KARANEESWARAR KOIL STREET CHENNAI-44. 2 MR. A.M.S.KANNAN NO.65 CLC LANE2D MAIN ROAD CHROMPET CHENNAI-44. 3 A.M.SIVALINGAM NO.65 CLC LANE2D MAIN ROAD CHROMPET CHENNAI-44. [ PETITIONERS ]. Vs 1 THE REGISTRAR DEBT RECOVERY APPELLATE TRIBUNAL CHENNAI. 2 THE REGISTRAR DEBT RECOVERY TRIBUNAL-II CHENNAI. 3 UNION BANK OF INDIA OVERSEAS BRANCH NO.96 B.N.CHETTY ROAD T.NAGAR CHENNAI-17 (ADMINISTRATIVELY TRANSFERRED TO ASSET RECOVERY BRANCH139BROADWAY CHENNAI-108). 4 BALASHANMUGHAM NO.155 VENKATASAMY ROAD R.S.PURAM COIMBATORE-641002. [ RESPONDENTS ]. This writ petition has been filed to issue a writ of Certiorarified Mandamus calling for the records on the file of the 1st respondent relating to the order dated 21.02.2012 in R.A.No.71 of 2011 and that of the 2nd respondent dated 12.08.2009 in R.A.No.7 of 2009 in O.A.No.260 of 2007 and quash the same and consequently direct the 3rd respondent to accept the payment made by the petitioner at the rate of 9% simple interest on the borrowings made by the petitioner from the date of the filing of the O.A.No.260 of 2007 and to release the mortgaged properties on such payment. C.R.P.Nos.4099 and 4100 of 2012: UNION BANK OF INDIA OVERSEAS BRANCH CHENNAI NOW ASSET RECOVERY BRANCH139BROADWAY CHENNAI. [ PETITIONER IN BOTH THE C.R.Ps.]. Vs M/S HORIZON EXPORTS REP BY ITS PROPRIETOR A.M.S.KANNAN NO.27, KARANEESWARAR KOIL STREET CHENNAI. [ FIRST RESPONDENT IN BOTH THE C.R.Ps. ]. A.M.S.KANNAN65CLC LANE2D MAIN ROAD CHROMPET CHENNAI. (SECOND RESPONDENT IN BOTH THE C.R.Ps.) A.M.SIVALINGAM NO.6 CLC LANE2D MAIN ROAD CHROMPET, CHENNAI. (THIRD RESPONDENT IN BOTH THE C.R.Ps.) PADAMCHAND KOTHARI S/O MANGILAL NO.100-B EKAMARA DAFFADAR STREET ALANDUR CHENNAI. (FOURTH RESPONDENT IN C.R.P.No.4099 of 2012 AND FIFTH RESPONDENT IN C.R.P.No.4100 of 2012) BALASHANMUGAM NO.155 VENKATASAMY ROAD R.S.PURAM COIMBATORE. (FIFTH RESPONDENT IN C.R.P.No.4099 of 2012 AND FOURTH RESPONDENT IN C.R.P.No.4100 of 2012) C.R.P.No.4099 of 2012: The C.R.P.No.4099 of 2012 is filed against the order dated 21.2.2012 made in Regular Appeal No.71 of 2011 on the file of the Debts Recovery Appellate Tribunal at Chennai reversing the order and decreetal order dated 12.8.2009 made in Review Application No.7 of 2009 in O.A.No.260 of 2007 on the file of the Debts Recovery Tribunal-II, at Chennai. C.R.P.No.4100 of 2012: The C.R.P.No.4100 of 2012 is filed against the order dated 21.2.2012 made in M.A.No.421 of 2010 on the file of the Debts Recovery Appellate Tribunal at Chennai reversing the order and decreetal order dated 21.4.2010 made in I.A.No.174 of 2010 in DRC No.89 of 2009 on the file of the Debts Recovery Tribunal-II, at Chennai. W.P.No.23488 of 2012: For petitioner : Mr.T.Sai Krishnan For Respondents : Mr.Srinath Sridevan for R3 R4  given up C.R.P.Nos.4099 and 4100 of 2012: For petitioner : Mr.Srinath Sridevan For respondents : Mr.T.Saikrishnan for R1 to R3 C O M M O N ORDER

(The order of the Court was made by M.JAICHANDREN J.,) At this stage of the hearing of the Writ Petition and the Civil Revision Petitions, the learned counsels appearing on behalf of the petitioners and the respondents 1, 2, 3 and 5 had submitted that the parties concerned have settled the issues in dispute, by way of a compromise entered into by them.

2. A Memorandum of Compromise, dated 10.1.2014, signed by the petitioner and the respondents 1, 2, 3 and 5, as well as by their counsels, has been filed, before this Court containing the terms of compromise.

3. The Memorandum of Compromise, dated 10.1.2014, reads as follows:- ".MEMORANDUM OF COMPROMISE The parties above named jointly stated as under:- 1. The above CRP and WP arise out of the order dated 21.2.12, made by the Debts Recovery Tribunal at Chennai. The same, in turn, arises out of proceedings which culminated in a Recovery Certificate being issued by the Debts Recovery Tribunal  2 at Chennai dated (10.09.2009) for Rs.59,77,414/-.

2. The Respondents and Petitioner have been having prolonged litigation arising out of the same.

3. The Respondents ultimately felt that they are not desirous of litigating any further and accordingly, wrote to the Petitioner Bank on 30.12.13, agreeing to pay the dues as per the aforementioned D.R.C. The Petitioner Bank has, on 7.1.14, accepted the said offer, on certain terms and conditions.

4. Accordingly, the parties have agreed as under:- a. After giving credit to all payments made by Respondents till date (including payment of Rs.12,00,000/- made on 04.01.2014 ultimo), the balance payable is Rs.38,70,797/-. b. Respondents hereby withdraw W.P.No.23488, as well as I.A.No.174 of 2010 in D.R.C.No.89 of 2009. c. Respondents also agree that the order passed by Debts Recovery Tribunal  2 Chennai, in Review Petition No.71 of 2009, is valid, and that DRC was correctly issued pursuant thereto. d. Respondents agree to pay the sum of Rs.38,70,797/- together with interest at 14.25% p.a from 01.01.2014 on monthly rests and legal costs/charges, not later than 31st March 2014. e. If Respondents pay the sum of Rs.38,70,797/- together with interest at 14.25% p.a from 01.01.2014 on monthly rests and legal costs/charges to the Petitioner Bank on or before 31st March 2014, then, the Petitioner Bank shall record full satisfaction before the Debts Recovery Tribunal  2 at Chennai, and shall also return the original title deeds in respect of the mortgaged properties that had been deposited with it, and filed into the DRT, back to the Respondents. f. In default of payment of the entirety of Rs.38,70,797/- together with interest at 14.25% p.a from 1.1.2014 on monthly rests and legal costs/charges on or before 31st March 2014, the Petitioner Bank shall be at liberty to proceed with enforcement of D.R.C.No.89/09 (pursuant to the allowing of the Review Petition No.71 of 2009). WHEREFORE, it is prayed that this Hon'ble Court be pleased to record the above Memo an pass a judgment as under:- a. Set Aside the Order dt.21.02.2012, made in Appeal No.30 of 2010, on the file of the Debts Recovery Appellate Tribunal at Chennai, and pass a Judgment in terms of the compromise, in C.R.P.No.4099 and 4100 of 2012; b. Dismiss W.P.No.23488 as withdrawn; c. Direct the the Debts Recovery Tribunal  2, at Chennai, to dismiss I.A.No.174 of 2010 in D.R.C.No.89 of 2009, as withdrawn Dated at Chennai, the 10th day of January 2014.".

4. Recording the above Memorandum of Compromise, dated 10.1.2014, the Writ Petition and the Civil Revision Petitions are disposed of on the above terms. The above said Memorandum of Compromise shall form part of the order. No costs. Connected M.Ps are closed. (M.J.J.) (M.K.K.S.J.) 27.2.2014 INDEX : YES INTERNET : YES To:

1. THE REGISTRAR DEBT RECOVERY APPELLATE TRIBUNAL CHENNAI. 2 THE REGISTRAR DEBT RECOVERY TRIBUNAL-II CHENNAI. 3 UNION BANK OF INDIA OVERSEAS BRANCH NO.96 B.N.CHETTY ROAD T.NAGAR CHENNAI-17 (ADMINISTRATIVELY TRANSFERRED TO ASSET RECOVERY BRANCH139BROADWAY CHENNAI-108). M.JAICHANDREN J., and K.KALYANASUNDARAM J., lan W.P.No.W.P.No.23488 of 2012, C.R.P.4099 of 2012 and C.R.P.No.4100 of 2012 and M.P.No.1 of 2013, M.P.No.1 of 2012 and M.P.No.2 of 2012 and M.P.No.1 of 2012 27.2.2014