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Judgment
P.B.Suresh Kumar, J
Petitioner is a company engaged in the development of lands and construction of residential and other buildings. They have availed a term loan of
Rs.10 crores from the first respondent bank. The petitioner could not repay the said loan as agreed. The bank, in the circumstances, instituted
proceedings before the Debts Recovery Tribunal for realisation of the balance outstanding in the loan account. The bank has also instituted
proceedings before the National Company Law Tribunal (NCLT) to initiate corporate insolvency resolution process in respect of the petitioner
company. During the pendency of the said proceedings, the petitioner approached the bank and offered to pay a sum of Rs.11.65 crores in
instalments. The offer made by the petitioner was accepted by the bank and the petitioner was permitted to pay the amounts as offered by them in
graded instalments, commencing from 04.02.2021 subject to a few conditions including the condition that the petitioner shall pay sum of Rs.8.7 lakhs
due to the bank in respect of another loan and that a compromise petition shall be filed before the Debt Recovery Tribunal incorporating the terms of
settlement and a default clause to the effect that the entire amounts due to the bank would become payable in the event of default in remitting any one
of the instalments. The bank has also agreed in terms of the compromise arrangement that on payment of the first instalment namely, Rs.20 lakhs and
Rs.8.7 lakhs referred to above, and on filing the compromise petition, the bank would report the settlement before the NCLT. The case of the
petitioner is that though they have complied with the terms of the compromise and has been remitting the instalments, the bank is not reporting the
compromise before the NCLT. It is alleged by the petitioner that on account of the said reason, the NCLT is taking steps to admit the proceedings and
in that event, the affairs of the petitioner would come to a standstill. The petitioner, in the circumstances, seeks appropriate directions to the NCLT to
close the proceedings pending before it as settled between the parties.
Heard the learned counsel for the petitioner as also the learned counsel for the first respondent bank.
The learned counsel for the bank pointed out that the petitioner has not remitted the instalments as agreed and as such, the compromise entered into
by the petitioner with the bank stands cancelled. It was submitted by the counsel that it is on account of the said reason that the bank could not report
the settlement before the NCLT. It was also submitted by the learned counsel that if the petitioner remits the amounts payable in terms of the
compromise upto 31.07.2021 with simple interest before the said date, the bank is agreeable to revalidate the compromise and in that event, the bank
may not have any objection in seeking adjournment in the proceedings pending before the NCLT.
The learned counsel for the petitioner does not dispute the fact the amounts payable in terms of the compromise upto date have not been paid by
them. On a query from the court, the learned counsel is not in a position to make a commitment as to the time limit within which the pending dues in
terms of the compromise could be paid to the bank.
As noted, substantial amounts running to several crores are due to the bank from the petitioner. In a case of this nature, I do not think that the relief
sought by the petitioner can be granted. Nevertheless, having regard to the totality of the facts and circumstances of the case, especially the fact that
rights of parties with whom the petitioner has entered into contract for construction of apartments and other buildings would be affected detrimentally
in the event of the admission of the proceedings instituted before the NCLT, I deem it appropriate to dispose of the writ petition granting liberty to the
petitioner to remit the graded instalments upto 31.08.2021 in terms of the compromise entered into between the parties with simple interest at the rate
of 11.10% on or before 31.08.2021. Ordered accordingly. Needless to say that if the petitioner remits the amounts as directed and continues to pay
the remaining graded instalments, the bank shall revalidate the compromise. Needless also to say that in the event of the petitioner remitting the
amounts as directed above and continuing to pay the remaining graded instalments, the bank shall not pursue the proceedings pending before the
NCLT.