2016 (6) TMI 1440 - HC - Companies Law

Recovery proceedings initiated by the U.P. Awas Evam Vikas Parishad - one time settlement scheme - HELD THAT - Once the petitioner had approached this Court earlier against the recovery proceedings initiated by the U.P. Awas Evam Vikas Parishad and had obtained an order for payment of the outstanding dues in instalments and thereby succeeded in keeping the recovery proceedings in abeyance, he cannot be permitted to challenge the indulgence granted by the Bank in terms of one time settlement that too after committing default in payment of instalments. In other words, the petitioner cannot be granted liberty to challenge the outstanding shown by the bank under one time settlement in the present writ petition. Petition dismissed.

Summary

Issues: Misleading the court by false statements, default in payment of instalments, challenging one-time settlement terms

In this judgment by the High Court, it was observed that the petitioner's counsel made a false statement regarding the timely deposit of instalments as directed by the court in a previous order. The court noted that only the initial deposit was made, and subsequent instalments were not deposited as scheduled. The court concluded that the petitioner attempted to mislead the court and cannot challenge the terms of a one-time settlement after defaulting on payment. The court emphasized that the petitioner, having previously obtained an order for payment in instalments to halt recovery proceedings, cannot contest the bank's one-time settlement terms now. The court held that if the petitioner has issues with the interest rate under the settlement, they should pursue legal avenues such as filing a suit or approaching the appropriate forum. Consequently, the writ petition was dismissed.