9911796707
TMI Blog2004 (1) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... g with future interest at the rate of 16% per annum and 2% penal interest with quarterly rests against the defendants/respondents, based on documents accompanying the plaint. It was during the currency of the lis before the Bank Court that an application came to be initiated by the defendants admitting the claim of the Bank with regard to the suit amount. It was further recited that an amount of Rs. five lacs towards the liquidation of suit amount has already been deposited by the defendants during the pendency of the suit. In affirmation of the contents of the application, the Trial Court recorded the statement of the counsel appearing for the defendants/respondents and also defendant-2, Mr. N.K. Jain. The Bank Court further found from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to award or refuse to award the interest is in the discretion of the Court. The Bank Court, therefore, by waiving off pendente lite interest held that the suit amount having been fully paid up, the suit by the plaintiff-Bank is dismissed. Aggrieved by the judgment and decree passed by the learned District Judge, Bank Cases, the appellant/plaintiff-Bank has impugned its correctness in this appeal mainly on the ground that the Bank Court has waived off the interest in exercise of discretion without any justification. That the Bank Court has rewarded the party by waiving off the interest without taking note of the fact that it has contested the case for a period of seven years. No plausible reasons have been given for non-consideration of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sectors including the small sector. These guidelines for compromise settlement covered the NPAs up to Rs. ten crores, which is in modification of guidelines set out in the Circular of 27th July, 2000. Mr. Raina has also produced the revised guidelines of the RBI dated January 29, 2003. Mr. Raina further submitted that a communication dated 24-2-2003 has been addressed by the appellant/plaintiff-Bank to the respondents/defendants for compromise settlement in terms of the new guidelines/scheme issued by the Reserve Bank of India for one time settlement. This fact has not been disputed even by Mr. Anil Mahajan, learned counsel representing the Bank. Mr. Anil Mahajan candidly conceded that the RBI scheme for one time settlement dated January 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness, which have become doubtful or at losses as on 31-3-2000 with an outstanding balance of Rs. ten crores and below on the cut-off date. The cut-off date given in the aforesaid scheme is 31st March, 2000. The account of the respondents/defendants was declared NPAs as far back as in the year 1990. 6. Mr. Anil Mahajan, learned counsel appearing for the Bank, however, could not refute when carried through the revised guidelines for compromise settlement of chronic NPAs issued by the Reserve Bank of India dated January 29, 2003 that the minimum amount that remains to be recovered as on 31st March, 2000 classified as doubtful or at loss would be 100% of the outstanding balance in the account as on the date of transfer of the protested b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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