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M/s. Akhil Fabrics Pvt. Ltd. & Another v/s Central Bank of India


Company & Directors' Information:- A R S FABRICS PRIVATE LIMITED [Active] CIN = U17115TZ2005PTC011921

Company & Directors' Information:- A R FABRICS PRIVATE LIMITED [Active] CIN = U17200DL2011PTC219522

Company & Directors' Information:- C K FABRICS PRIVATE LIMITED [Active] CIN = U17291TG2012PTC080223

Company & Directors' Information:- S L D R FABRICS PVT LTD [Active] CIN = U17111PB1987PTC007634

Company & Directors' Information:- D M FABRICS PRIVATE LIMITED [Active] CIN = U17220WB1996PTC081807

Company & Directors' Information:- K K P FABRICS PRIVATE LIMITED [Active] CIN = U65999TZ1988PTC002284

Company & Directors' Information:- S N FABRICS PRIVATE LIMITED [Active] CIN = U18101WB2005PTC102631

Company & Directors' Information:- M J FABRICS PVT LTD [Active] CIN = U51909WB1992PTC057145

Company & Directors' Information:- J K T FABRICS PVT LTD [Active] CIN = U17120MH1981PTC025168

Company & Directors' Information:- S K FABRICS PVT LTD [Active] CIN = U18101PB1983PTC005690

Company & Directors' Information:- G M FABRICS PRIVATE LIMITED [Active] CIN = U17116MH1985PTC034978

Company & Directors' Information:- H M C FABRICS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1993PTC004758

Company & Directors' Information:- THE INDIA COMPANY PRIVATE LIMITED [Active] CIN = U74999TN1919PTC000911

Company & Directors' Information:- B D S FABRICS PRIVATE LIMITED [Strike Off] CIN = U18201PB1997PTC020171

Company & Directors' Information:- K J N FABRICS PRIVATE LIMITED [Active] CIN = U17291UP2012PTC048868

Company & Directors' Information:- G M FABRICS PRIVATE LIMITED [Amalgamated] CIN = U17116MH2001PTC131468

Company & Directors' Information:- J S R FABRICS PRIVATE LIMITED [Active] CIN = U17291MH2011PTC221773

Company & Directors' Information:- K P FABRICS PVT LTD [Strike Off] CIN = U74899DL1999PTC100750

Company & Directors' Information:- C P FABRICS PRIVATE LIMITED [Strike Off] CIN = U17115PB1998PTC020891

Company & Directors' Information:- G N FABRICS PRIVATE LIMITED [Active] CIN = U17116PB1997PTC019949

Company & Directors' Information:- L R FABRICS PRIVATE LIMITED [Active] CIN = U17110GJ2005PTC046905

Company & Directors' Information:- S D M FABRICS PRIVATE LIMITED [Amalgamated] CIN = U18101MH2003PTC140135

Company & Directors' Information:- S V FABRICS PRIVATE LIMITED [Active] CIN = U17110TG1997PTC026734

Company & Directors' Information:- R C FABRICS PRIVATE LIMITED [Active] CIN = U74899DL1984PTC017692

Company & Directors' Information:- S G FABRICS PRIVATE LIMITED [Active] CIN = U51909DL2004PTC129675

Company & Directors' Information:- J & Y FABRICS PRIVATE LIMITED [Active] CIN = U17200MH2011PTC217416

Company & Directors' Information:- R L FABRICS LIMITED [Strike Off] CIN = U17110MH2000PLC123685

Company & Directors' Information:- R D FABRICS PRIVATE LIMITED [Active] CIN = U74899DL1989PTC038023

Company & Directors' Information:- P R FABRICS PRIVATE LIMITED [Active] CIN = U51909DL1996PTC082519

Company & Directors' Information:- AKHIL INDIA PRIVATE LIMITED [Active] CIN = U51109JK2000PTC002046

Company & Directors' Information:- S S FABRICS PVT LTD [Strike Off] CIN = U17117PB1989PTC009201

Company & Directors' Information:- AKHIL FABRICS PRIVATE LIMITED [Active] CIN = U17110MH1990PTC058256

Company & Directors' Information:- L S FABRICS PRIVATE LIMITED [Strike Off] CIN = U51909UP1997PTC021992

Company & Directors' Information:- B M FABRICS (INDIA) PRIVATE LIMITED [Active] CIN = U17116PB1997PTC019887

Company & Directors' Information:- B S FABRICS PRIVATE LIMITED [Active] CIN = U18101DL2001PTC112412

Company & Directors' Information:- Y G FABRICS PRIVATE LIMITED [Active] CIN = U18101DL2005PTC138393

Company & Directors' Information:- INDIA CORPORATION PRIVATE LIMITED [Active] CIN = U65990MH1941PTC003461

Company & Directors' Information:- J. J. L FABRICS PRIVATE LIMITED [Active] CIN = U17120WB2012PTC175840

Company & Directors' Information:- M. A. FABRICS PRIVATE LIMITED [Active] CIN = U17120MH2008PTC178099

Company & Directors' Information:- AKHIL CORPORATION PRIVATE LIMITED [Under Process of Striking Off] CIN = U74900TG2015PTC098902

Company & Directors' Information:- K R FABRICS PRIVATE LIMITED [Strike Off] CIN = U17219TZ1999PTC008955

Company & Directors' Information:- L . K . FABRICS PRIVATE LIMITED [Strike Off] CIN = U17120MH1996PTC099869

Company & Directors' Information:- R B FABRICS PRIVATE LIMITED [Strike Off] CIN = U74899DL1987PTC027620

Company & Directors' Information:- G AND G FABRICS PRIVATE LTD [Active] CIN = U74899DL1987PTC028967

Company & Directors' Information:- P S FABRICS PRIVATE LIMITED [Active] CIN = U74899DL1989PTC035780

Company & Directors' Information:- J N S FABRICS PVT LTD [Strike Off] CIN = U24131WB1988PTC044665

Company & Directors' Information:- S B M FABRICS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1995PTC005894

Company & Directors' Information:- U J L FABRICS PVT LTD [Strike Off] CIN = U93090TN1987PTC014773

Company & Directors' Information:- S D FABRICS PRIVATE LIMITED [Strike Off] CIN = U17124RJ1977PTC001750

Company & Directors' Information:- G C FABRICS PRIVATE LIMITED [Strike Off] CIN = U17290PB2011PTC035780

Company & Directors' Information:- K B G FABRICS PRIVATE LIMITED [Strike Off] CIN = U17121DL2007PTC169982

Company & Directors' Information:- S H A V FABRICS PRIVATE LIMITED [Strike Off] CIN = U18101DL2004PTC126287

Company & Directors' Information:- S R D FABRICS PRIVATE LIMITED [Strike Off] CIN = U17117PB1996PTC017662

Company & Directors' Information:- AKHIL FABRICS PVT LTD [Amalgamated] CIN = U65990MH1983PTC030282

Company & Directors' Information:- G 2 FABRICS PRIVATE LIMITED [Strike Off] CIN = U17100MH2005PTC157862

Company & Directors' Information:- A-2 FABRICS PRIVATE LIMITED [Active] CIN = U17115PN2006PTC022179

Company & Directors' Information:- J J FABRICS PRIVATE LIMITED [Active] CIN = U17120MH2010PTC198619

Company & Directors' Information:- J H P FABRICS PRIVATE LIMITED [Strike Off] CIN = U18100MH2005PTC156395

Company & Directors' Information:- P N FABRICS PRIVATE LIMITED [Active] CIN = U17120DL2014PTC271456

Company & Directors' Information:- K. N. FABRICS PRIVATE LIMITED [Strike Off] CIN = U17121DL2007PTC169985

Company & Directors' Information:- G R D FABRICS PRIVATE LIMITED [Strike Off] CIN = U18101DL2005PTC133556

Company & Directors' Information:- S P S FABRICS PRIVATE LIMITED [Strike Off] CIN = U18101DL2005PTC135658

Company & Directors' Information:- A P FABRICS PRIVATE LIMITED [Strike Off] CIN = U74999DL2007PTC160581

Company & Directors' Information:- L. B. FABRICS PRIVATE LIMITED [Active] CIN = U17122GJ2010PTC059299

Company & Directors' Information:- J. G. FABRICS PRIVATE LIMITED [Active] CIN = U52100PB2019PTC049666

    Writ Petition (Lodging) No. 1536 of 2017

    Decided On, 28 June 2017

    At, High Court of Judicature at Bombay

    By, THE HONOURABLE MR. JUSTICE B.R. GAVAI & THE HONOURABLE MR. JUSTICE RIYAZ I. CHAGLA

    For the Petitioners: Umesh Shetty a/w Sharila D'Souza, Gopalkrishna Nayak i/by M/s. Flavia Legal, Advocates. For the Respondent: Rohan Cama a/w Maneesha Patel, Advocates.



Judgment Text

Oral

B.R. Gavai, J.

1. Rule. Rule made returnable forthwith.

Heard, by consent.

2. The Petition arises out of the peculiar facts and circumstances. A one time settlement was arrived at between the Petitioners and the Respondent-Bank vide the terms and conditions dated 20 January 2017. As per the said settlement, an amount of Rs.40,00,000/- (Rupees Forty Lacs only) was to be paid by the Petitioners to the Respondent-Bank.

3. It is not in dispute that when the Petitioners had approached this Court, an amount of Rs.35,00,000/- (Rupees Thirty Five lacs only) had already been paid by the Petitioners to the Respondent-Bank. However, the Petitioners were required to approach this Court since the bank sought revocation of settlement on the ground that the post dated cheques are not deposited.

4. When the matter was listed before us on 19 June 2017, the learned counsel appearing for the Petitioners made a categorical statement that the Petitioners are willing to pay the remaining amount of Rs.5,00,000/- (Rupees Five Lacs only) along with the interest as agreed much prior to 20 July 2017, which was the agreed date. It is not in dispute that the agreed interest comes to an amount of Rs.71,750/- (Rupees Seventy One Thousand Seven Hundred Fifty only).

5. During the pendency of the Petition, an amount of Rs.5,00,000/- (Rupees Five Lacs only) has already been paid by the Petitioners to the Respondent-Bank totalling to agreed Rs.40,00,000/- (Rupees Forty Lacs only). The Petitioners have brought along with them a Demand Draft of an amount of Rs. 71,750/- (Rupees Seventy One Thousand Seven Hundred Fifty only) drawn in favour of the Respondent-Bank.

6. Shri Cama, the learned counsel appearing on behalf of the Respondent-Bank submits that, the matter is purely contractual between the parties. He submits that when the terms between the parties are reduced into writing, the parties are bound to comply with the same and any deviation therefrom, is not permissible. He further submits that since the Petitioners have not provided Post dated cheques, on non-fulfilment of the said conditions, the Respondent- Bank is justified in revoking the settlement.

7. The Respondent-Bank is a nationalized bank and as such the State within a meaning of Article 12 of the Constitution of India. It is settled law that every organ of the State is required to adhere the principles of reasonableness, equity, fairness and good conscience. A very essence of the settlement is that an amount of Rs.40,000/- (Rupees Forty Lacs only) along with the interest, has to be paid by the Petitioners to the Respondent-Bank. When the Petitioners have in essence complied with the terms and conditions, merely because the mode is different, in our considered view, cannot be a ground for the bank to revoke the settlement unilaterally. In that view of the matter, we find that the stand taken by the Bank would not stand the touchstone of the parameters laid down by the Apex Court under Article 14 of the Constitution of India. We therefore, find that the action of the bank is not justified in law.

8. Rule is therefore, made absolute in the following terms-

a) The Respondent-Bank is directed to act upon the terms and conditions of the settlement as agreed vide communication dated 20 January 2017, at Annexure-A, without insisting upon the condition of deposit of Post dated cheques.

b) We hold that, since as on date the entire amount of Rs.40,00,000/- (Forty Lacs only) as per the said settlement stands paid by the Petitioners and since the Petitioners have now handed over a Demand Draft of Rs.71,750/- (Rupees Seventy One Thousand Seven Hundred Fifty only) towards the interest, the terms and conditi

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ons as agreed vide communication dated 20 January 2017, stands completely fulfilled. c) We direct the learned counsel appearing on behalf of Respondent-Bank to accept the said Demand Draft towards the interest dues. d) The Respondent-Bank shall do all that is necessary in terms of the settlement, so as to release the Petitioners from the liability of the loan. e) No order as to costs.
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