Supreme Court of India
M/S CSANGO & ORS.versusUNION BANK OF INDIA
- Citation
- 2009 INSC 490
- Decided
- 13 April 2009
- Disposal
- Disposed off
- Bench
- DALVEER BHANDARI
Holding
The Supreme Court accepted the parties' settlement, ordered disposal of the appeal on those terms, and stipulated that default would revive the original decree with interest at 12% per annum.
Summary
The appellants, borrowers, appealed a decree of the Bombay High Court in a writ petition concerning a loan claim of Union Bank of India. While the appeal was pending, the parties reached a settlement whereby the appellants would pay Rs.3.10 crore in four installments, with an option to pay the full amount by 9 July 2009 without interest, and a default clause reverting to the original decree. The Supreme Court examined the settlement terms and, in the interest of justice, accepted them, directing the appellants to adhere to the schedule and imposing a 12% per annum interest if the full amount was not paid by the stipulated date. It also clarified that any default would cause the entire decree amount to become payable as if no settlement existed, and ordered the continuation of asset attachments until full payment. Consequently, the appeal was disposed of in accordance with the settlement, and each party was ordered to bear its own costs.
Issues considered
- The Court's authority to dispose of an appeal based on a settlement reached between the parties.
- The effect of a default under the settlement on the enforceability of the original decree.
- The appropriate rate of interest to be levied if the settlement amount is not paid by the agreed date.
Subjects
settlementcompromiseinterestdecreeattachmentcivil appealbank loanpayment schedule
Judgment
·~ J
[2009) 5 S.C.R. 937
- MIS CSANGO & ORS.
v.
A
.. UNION BANK OF INDIA
(Civil Appeal No. 2378 of 2009)
APRIL 13, 2009
B
[DALVEER BHANDARI AND HARJIT SINGH BEDI, JJ.)
Settlement/Compromise - Settlement arrived at between
the parties - In order to put quietus to the entire matter, appeal
disposed of in terms of the settlement - Appropriate directions c
issued - Bank I Banking.
. When the instant appeal was taken up by the Court
for final disposal, the parties stated that they had amicably
settled the matter and the agreed terms of settlement/ D
compromise were placed on record.
It was prayed that the appeal, be disposed of in terms
of the said settlement arrived at by the parties.
Disposing of the appeal in terms of the settlement/ E
compromise, the Court
HELD: The appellants would be at liberty to pay the
-1-- entire amount of Rs.3.10 crores on or before 9th July,
2009 without any interest. In case the entire amount is not
F
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 July, 2009.
The appellants are directed to strictly adhere to the time
schedule agreed upon by them. In case of any default of
payment of any of the installments or the interest G
...._
• 1-
accrued, the entire decreetal amount would be payable
as if there is no settlement between the parties. [Paras 6,
_..,,,..
7 and 8] (940-A-D]
937 H
938 SUPREME COURT REPORTS [2009] 5 S.C.R.
.
'-
A CIVIL APPELLATE JURISDICTION : Civil Appeal No.
2378 of 2009.
From the Judgment & Order dated 21.08.2008 of the High
Court of Judicature at Bombay in Writ Petition No. 2361/2007.
B
•
P.H. Parekh, Sameer Parekh, E.R. Kumar, Ranjeeta ~
Rohatgi and Shubhranshu Padhi (for Parekh & Co.) for the
Appellant.
L. Nage!swar Rao and O.P. Gaggar, for the Respondents.
c The Judgment of the Court was delivered by
DALVEER BHANDARI, J. 1. Leave granted.
2. This appeal is directed against the judgment of the High ~
D Court of Judicature at Bombay passed in Writ Petition No.2361
of 2007 on dated 21st August, 2008.
3. Order 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
E directed the parties to maintain status quo until the next date.
The interim order was later on directed to be continued till
further orders.
4. When the appeal was taken up for final disposal, the
F 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
G terms of the settlement arrived at by the parties on 9th April,
2009.
-
-1' •
5. We 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
H
CSANGO & ORS. v. UNION BANK OF INDIA 939
• j
[DALVEER BHANDARI, J.]
parties. The agreed terms are set out as under:- A
"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. B
f
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.
c
(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. D
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.
E
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 F.
made by ORT 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 G
stand vacated.
, ~
7. The parties leave the decision regarding interest to
a. the discretion of this Court."
H
940 SUPREME COURT REPORTS [2009] 5 S.C.R. '
A 6. We 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
B before 9th July, 2009 then the appellants would pay to the
respondent Bank interest@ 12% per annum. The interest to
be computed from 10th July, 2009.
7. We direct the appellants to strictly adhere to the time
C schedule agreed upon by the appellants.
8. We 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.
D
9. No 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
circumstance1s of the case, we direct the parties to bear their
own costs.
B.B.B. Appeal disposed of.
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