C. W. P. No. 11134 of 2008 (O&M) 1
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH.
Case No. : C. W. P. No. 11134 of 2008 (O&M)
Date of Decision : November 25, 2008.
Shree Ram Jewellary Production
Co-operative Industrial Society Ltd.,
Bhodia Khera, District Fatehabad .... Petitioner
Vs.
State of Haryana and others .... Respondents
CORAM : HON’BLE MR. JUSTICE ADARSH KUMAR GOEL
HON’BLE MR. JUSTICE L. N. MITTAL
* * *
Present : Mr. S. K. Sharma, Advocate
for the petitioner.
Mr. C. R. Dahiya, Advocate
for the respondents.
* * *
ADARSH KUMAR GOEL, J. (Oral) :
This petition seeks quashing of order dated 29.05.2008,
Annexure P-16, to the effect that the petitioner was required to pay total
amount of Rs.7,29,943/-, against which the petitioner had paid a sum of
Rs.4,91,400/- and thus, a sum of Rs.2,38,543/- was still outstanding.
Case of the petitioner is that the petitioner was not liable to pay
anything beyond the principal amount, which has already been paid.
Reliance has been placed on Scheme, Annexure P-3, as modified vide letter
C. W. P. No. 11134 of 2008 (O&M) 2
dated 30.07.2007, Annexure P-4.
The Scheme provides that borrowers of Co-operative Banks,
who defaulted, could pay the balance outstanding amount as on 31.03.2004,
by 31.10.2007 without any further interest. Amendment of the policy, vide
Annexure P-4, substitutes the following words :-
“B. The amount that should be recovered under
the policy in respect of the loans classified as
doubtful or loss as on 31.03.2004 would be 100%
of the outstanding balance the accounts on
31.03.2004.”
According to the petitioner, as per amendment, Annexure P-4,
100% of the outstanding balance on 31.03.2004 related only to the principal
amount and not to the interest.
In reply filed contesting-respondent Bank, interpretation as per
letter Annexure P-16, had been reiterated by submitting that the words
“outstanding balance” will include interest payable up to 31.03.2004, which
was the cut-off date.
We are unable to find any fault with the interpretation placed
by respondent no.5-Bank, on the one time settlement policy, contained in
Annexures P-3 and P-4. We find that in the policy Annexure P-3, the term
“outstanding balance” is defined as under :-
“Amount recoverable from the borrower in
the books of bank i.e. the principal amount, interest
thereon and other charges as applicable if any
thereon.”
In view of above, the stand taken by the petitioner, cannot be
held to be honest. Moreover, we find that as per original policy, Annexure
P-3, liability to pay interest was till the date of payment, as per clause B of
Para 8 and as per amendment vide Annexure P-4, there is no liability to pay
C. W. P. No. 11134 of 2008 (O&M) 3
further interest after 31.03.2004.
The writ petition is dismissed.
(ADARSH KUMAR GOEL)
JUDGE
November 25, 2008 ( L. N. MITTAL )
monika JUDGE