9911796707
TMI Blog2003 (11) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... Recovery Appellate Tribunal ('DRAT'), Calcutta. Two appeals were preferred before the DRAT. Appeal No. A-23/2000 was preferred by the appellant and Appeal No. A-6/2001 was preferred by the respondents herein. By the impugned judgment Appeal No. A-23/2000 was dismissed and Appeal No. A-6/2001 was allowed. In view of the order that we propose to pass, it may not be necessary to delve into the facts leading to the filing of the present appeals. Suffice it to say that during the pendency of the suit, a Memorandum of Understanding (MOU) was arrived at, in a meeting held on 18-5-1994 between the parties in which a compromise was entered into, on the sole basis of which the order impugned was rendered. 3. The spinal question raised in these appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der no obligation to pay the said sum to the Bank. The only question remains in dispute is the calculation of interest rather the date, time from which such interest is to be calculated. That MOU does not mention the time from which such interest is to be calculated and as such in my opinion since a new contract has invoked by way of talk between the parties on 18-5-1994 the claim of interest cannot go earlier to the said period. Because the Bank actually waived its the original claim of a much more higher sum by agreeing to remain contended with 33.14 lakhs as suit amount. As such, the subsequent contention of the Bank as conveyed by letter dated 12-6-1995 enhancing the suit amount as 47.22 lakhs cannot stand. It further appears that in sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill be useful to reproduce the MOU, entered into between the parties on 18-5-1994. "1. M/s. Swaika Vanaspati Products Ltd. will withdraw the suit against UBI regarding under-writing commitment in SVPL Public Issue. 2. The suit against SOM may be is settled for Rs. 33.14 lakhs (suit amount) plus simple interest @ 6% thereon till the date of liquidation. The period for liquidation kept at 12 months from the date of 1st instalment. The first instalment of Rs. 12.00 lakhs is to be paid within one month preferably before 30th May, 1994. The sum of Rs. 2.33 lakhs which is the guarantee liability, is to be honoured due to invocation of guarantee, will have to be paid by the borrower additionally but will not bear any interest. To sum-up, the tot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erms of MOU before an appropriate court. 7. Undisputedly, the respondents did not withdraw the suit filed by them against the United Bank of India, which is the condition precedent stipulated in clause (1) of the MOU. The respondents also did not pay the guarantee liability of Rs. 2.33 lakhs. No compromise petition was filed before an appropriate court. Therefore, by no stretch of imagination it can be said that the terms and conditions stipulated in the MOU had been complied with and acted upon by the parties. Apart from what has been said, subsequent to the MOU there was also a lot of correspondence between the parties by exchanging letters giving offers and counter-offers, as would be revealed in the letters dated 16-6-1994, 23-12-1994, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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