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Judgment
In both the appeals the challenge is to the order dated 25.05.2026 whereby the application bearing I.A. No. 183/2026 filed by Indian Overseas Bank seeking adjournment of O.A. bearing No. 02/2023 sine die on the ground of settlement was dismissed.
Ms. Swati Sood, Advocate for Indian Overseas Bank, has referred One Time Settlement (OTS) dated 24.12.2024 and OTS revalidation sanction letter dated 31.01.2026 stated that the entire dispute between the Indian Overseas Bank and the defendant no.1 i.e. M/s Varahi Diamond & Finance Limited has been settled for a sum of Rs.88.11 crore and out of the said amount the borrower i.e. M/s Varahi Diamond & Finance Limited has already made a part payment.
Sh. Sanjeev Bhandari, Senior Advocate assisted by Sh. Rajesh Sharma and Sh.Ravi Data, Advocates for M/s Varahi Diamond and Finance Limited also affirms the said proposition and stated that the borrower M/s Varahi Diamond and Finance Limited shall honour the OTS without any default.
In above circumstances, the contesting parties i.e. Indian Overseas Bank and the main borrower i.e. M/s Varahi Diamond and Finance Limited agreed that the O.A. bearing No. 02/2023 may be adjourned till February 2027 when the last payment has to be made on behalf of the main borrower M/s Varahi Diamond and Finance Limited.
In these circumstances, O.A. bearing No. 02/2023 stated to be pending before DRT-III, Delhi is ordered to be adjourned sine die till 31.03.2027 and if by that time the OTS as mentioned herein is not executed or fails for any reason then the DRT-III, Delhi shall be at liberty to proceed with the trial of O.A. No.02/2023 in accordance with law.
On the prayer of the counsel for Indian Overseas Bank, the cost of Rs.50,000/- imposed vide order dated 25.05.2026 also stands waived. Both the appeals stand disposed of.
The date 22.07.2026 already fixed in Misc. Appeal No.221/2026 stands cancelled.