Allowed

M/S Castle Talabgaon andRESORTS Anr. v. Idbi Bank Ltd. and Ors.

Rajasthan HC9 Mar 2015CW/8781/2014

Case brief

AI extract

What is this about?

The High Court disposed of two writ petitions filed to quash Demand Notices and stay proceedings. The Bank and Petenters reached a settlement via consent order involving payment of Rs. 450 lakhs, waiver of interest, quashing of FIR, and withdrawal of contempt petition, subject to payment conditions.

What did the court decide?

Loan account settled for Rs. 450 lakhs with interest waiver; FIR quashed; contempt petition withdrawn; consent decree to be filed; stay on SARFAESI proceedings conditional on payment.

M/S Castle Talabgaon andRESORTS Anr. Vs Idbi Bank… — Banking and Recovery | Rajasthan HC (2015)

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S.B. CIVIL WRIT PETITION NO. 8875/2014

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IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR. ORDER

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(1) S.B. CIVIL WRIT PETITION NO. 8875/2014 WITH S.B. CIVIL MISC. STAY APPLICATION NO. 8219/2014

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DALPAT SINGH RATHORE VS. AUTHORISED OFFICER, IDBI BANK LIMITED. WITH

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(2) S.B. CIVIL WRIT PETITION NO. 8781/2014 WITH

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S.B. CIVIL MISC. STAY APPLICATION NO. 8113/2014

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M/S. CASTLE TALABGAON & RESORTS PVT. LTD. VS. IDBI BANK LIMITED & OTHERS.

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DATE OF ORDER : 09.03.2015

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HON'BLE MR. JUSTICE MOHAMMAD RAFIQ

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Mr. Sudhanshu Kasliwal, Senior Counsel assisted by Ms. Sukriti Kasliwal, for the petitioner. Mr. S.K. Singhal, for the respondent-IDBI Bank.

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BY THE COURT:

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Both these writ petitions have been filed by the petitioners Dalpat Singh Ratore and M/s. Castle Talabgaon & Resorts Pvt. Ltd. respectively with the prayer that Demand Notice dated 06.06.2014 issued under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002(for short 'SARFAESI Act') be quashed and set aside and Respondent-Bank be directed not to publish the name, photographs and other particulars of the petitioners in the local dailies and letter of acceptance of the OTS proposal submitted by the Principal Borrower vide letter dated 23.06.2014 for Rs. 4,30,00,000/- on the terms and conditions enumerated therein by adjusting sum of Rs. 10,00,000/- appropriated by the RespondentBank on 04.07.2014 towards first installment of OTS offer of Rs.

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S.B. CIVIL WRIT PETITION NO. 8875/2014

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4,30,00,000/-. It is further prayed that the petitioners be allowed to deposit the balance OTS amount as per the Schedule given in letter dated 23.06.2014.

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This Court on hearing learned counsel for the parties on 09.02.2015 passed following order in Writ Petition No. 8875/2014:

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“After making arguments at some length, learned Senior Counsel appearing on behalf of the petitioner has submitted that the petitioner has already deposited amount of Rs. 1.10 crore as against amount of Rs. 4.50 crore, the offer given by the respondent to settle dues of the petitioner in one time settlement. The petitioner offered to deposit second installment of Rs. 1.06 crore, which was declined by the respondent-bank as the petitioner insisted that one time settlement was acceptable by him only if the respondent-bank agree to settle all its dues for a sum of Rs. 4.30 crore.

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Mr. S.K. Singhal, learned counsel for the respondent-bank has submitted that the respondent-bank has already granted substantial relaxation to the petitioner by reducing total dues of Rs. 6,24,06,080/-, as per Annexure-4, to Rs. 4,50,00,000/- and no further relaxation can be granted to the petitioner.

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Learned Senior counsel appearing on behalf of the petitioner prays for some time to consult with his client and make a firm offer to the respondent-bank as to the payment of remaining amount, out of aforesaid amount of Rs. 4.50 crore as to in what manner the same shall be paid.

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Learned counsel for the respondents submitted that if any such offer is made by the petitioner to the respondent-bank, the same shall be examined and this Court shall be appraised of the stand of the bank thereabout on the next date and till then, they shall not take any further measures against the petitioner.

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List this matter on 19.02.2015 along with connected matter.”

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When Writ Petition No. 8875/2014 was listed thereafter

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before this Court on 19.02.2015, following order was passed:

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“Mr. Sudhanshu Kasliwal, learned Senior Counsel appearing on behalf of the petitioner has submitted that after order was passed by this Court on 09.02.2015, the petitioner has submitted written

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S.B. CIVIL WRIT PETITION NO. 8875/2014

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offer to the respondent-bank that he is agreeable to pay a sum of Rs. 2,00,00,000(Rupees Two Crores) on or before 31.03.2015 and remaining Rs. 1,40,00,000/- in three monthly installment of Rs. 46,66,666/- each to be paid in the months of April, May and June, 2015 respectively. Learned counsel for the petitioner has submitted that the petitioner is now agreeable to pay a total sum of Rs. 2,40,00,000/- on or before 31.03.2015 and remaining Rs. 1,00,00,000/- in three installments of Rs. 33,33,333/- each in the months of April, May and June, 2015. It is contended that the respondent-bank has sent a conditional letter, in which it is demanding interest for the period of delay on outstanding OTS amount @ BBR + 3% after the interest free period of three months as mentioned in letter dated 05.08.2014, when originally OTS of loan was approved. Mr. Sudhanshu Kasliwal, learned Senior Counsel has submitted that if the bank waives the interest, the petitioner is prepared to deposit amount of Rs. 2.40 crores in cash with the bank and hand over three post dated advance cheques of Rs. 33,33,333/- each and the petitioner undertakes to withdraw FIR and contempt petition and accordingly the Bank should get the original application filed before the Debts Recovery Tribunal decided.

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Mr. S.K. Singhal, learned counsel for the respondent-bank, on being instructed by Mr. Kirshna Kumar, AGM, NPA Management Group, New Delhi, present in person, prays for some time to seek instructions.

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List this writ petition along with connected matter on 09.03.2015, as prayed.”

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Mr. Sudhanshu Kasliwal, learned Senior Counsel appearing on behalf of the petitioner has submitted that in terms of order dated 19.02.2015 passed by this Court, the petitioner is prepared to hand over cheques of the required amount today to Mr. S.K. Singhal, learned counsel for the Respondent-IDBI Bank.

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Mr. S.K. Singhal, learned counsel for the respondentBank has produced for perusal of the Court communication dated 07.03.2015 sent by Assistant General Manager, IDBI Bank, NPA Management Group, New Delhi through e-mail, which reads as

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S.B. CIVIL WRIT PETITION NO. 8875/2014

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under:

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“IDBI Bank may agree to the proposal of the Applicant for the settlement amount of Rs. 450.00 lakh envisaging balance payment of Rs. 340.00 lakh and waiver of interest for the intervening period on the directions of Hon'ble Court. M/s Castle Talabgaon & Resorts Pvt. Ltd. will pay Rs. 240.00 lakh immediately and submit three PDC's for balance payment of Rs. 100.00 lakh in three equal monthly instalments. First such instalment will be due in month of April, 2015. The applicant will withdraw all the legal proceedings and FIR initiated against Bank/Bank Officials. A consent decree will also be filed in DRT, Jaipur in the ongoing Original Application after settlement of OTS. In case of any default in payment, IDBI will be well within its rights to revoke the proposal and original liabilities will be restored.”

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Mr. Sudhanshu Kasliwal, learned Senior Counsel has handed over to Mr. S.K. Singhal, learned counsel for the respondentBank Cheque No. 000141 amounting to Rs. 2,00,00,000/- dated 11.03.2015; Cheque No. 000143 dated 18.03.2015 amounting to Rs. 40,00,000/- and three Cheques bearing numbers 000130, 000134, 000133 respectively amounting to Rs. 33,33,333.33 each dated 30.04.2015, 30.05.2015 and 30.06.2015 respectively. All the aforesaid cheques have been drawn on HDFC Bank in the name of Castle Talabgaon & Resorts Pvt. Ltd.(loanee's account). Copy of the e-mail dated 07.03.2015 and cheques are taken on record of Writ Petition No. 8875/2014.

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In view of above, both the writ petitions are disposed of in terms of following consent order:

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“(i) Loan account of the petitioner shall stand settled in terms of payment of Rs. 450.00 lakh along with waiver on interest for the intervening period from the date of approval of One Time

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S.B. CIVIL WRIT PETITION NO. 8875/2014

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Settlement on 05.08.2014 till today.

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(ii) The petitioner shall get First Information Report No. 554/2014 registered at Police Station Bajaj Nagar, Jaipur quashed in terms of aforesaid compromise in the pending S.B. Criminal Misc. Petition No. 5281/2014.

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(iii) The petitioner shall withdraw S.B. Civil Contempt Petition No. 110/2015 filed against the bank officials before this Court.

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(iv) The parties shall file joint application before Debts Recovery Tribunal, Jaipur in Original Application No. 160/2014(IDBI Bank Ltd. Vs. Castle Talabgaon & Resorts Pvt. Ltd.) for getting the same decided by consent decree.

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(v) The respondent-Bank shall not initiate any proceedings against the petitioner under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, so long as the petitioner is not in default in payment of the amount of the aforesaid cheques.

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(vi) In case of default, One Time Settlement accepted by the Respondent-Bank in terms of offer of the petitioner shall stand revoked and the Respondent-Bank shall be free to proceed against the petitioner in accordance with law.

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(vii) After entire payment of Rs. 450.00 lakh is received by the Respondent-Bank in terms of the aforesaid settlement, the Respondent-Bank shall issue fresh corrigendum notice for general information to be published in the news papers at the cost of the petitioner to the effect that property of the petitioner mortgaged with the Respondent-Bank stands released from the charge with the payment of entire dues as per One Time Settlement.”

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Stay applications and Applications No. 6980/2015 and

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9370/2015 stand disposed of.

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(MOHAMMAD RAFIQ),J.

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Manoj, S.NO.32-33.

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S.B. CIVIL WRIT PETITION NO. 8875/2014

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“All corrections made in the judgment/order have been incorporated in the judgment/order being emailed.” MANOJ NARWANI Personal Assistant.

M/S Castle Talabgaon andRESORTS Anr. v. Idbi Bank Ltd. and Ors.

Case brief

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M/S Castle Talabgaon andRESORTS Anr. v. Idbi Bank Ltd. and Ors.

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