Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Compromise: Settlement--One Time Settlement Appellant-bank offered Compromise |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Compromise: Settlement — One Time Settlement (OTS) Scheme — Appellant-bank offered OTS to the first respondent for settlement of entire dues to the bank on payment of Rs.5.42 crores subject to bank’s right to recompense that the mortgaged properties shall not be sold within a period of 3 years and if properties are sold within next 3 years then parties shall obtain prior permission of the bank and share with the bank 50% of increase in fair market value of the properties which is Rs.8.82 crores at the time of sanction of this settlement ~ In response to the offer of OTS, the first respondent managed to enter into an agreement with the second respondent for sale of half of the mortgaged property and pursuant to that agreement, whole amount of Rs.3.42 crores as per offer made by the bank was paid in terms of OTS — However, bank refused to settle the accounts and release the mortgage on the ground that the third party interest having been created, the bank was entitled to 50% of fair market value — High Court directed the bank to accept the payment of Rs.5.42 crores in full and final settlement of all the claims as per the OTS proposed and release the mortgaged property with further direction not to sell the property for a period of three years — Whether appellant-bank is entitled to 50% of the increase in fair market value of property fixed at the time of settlement in terms of OTS — Held: The creation of third party interest or arrangement by way of agreement for sale within the three year period is different from sale — Admittedly, sale was not made within the period of three years of settlement — The only restriction was on sale of the property within three years of the settlement — That admittedly having not been done, the appellant cannot rest any claim under law for the share of the increase in fair market value by way of recompense — Appellant-bank directed to release the title deed of |
Judge | Hon'ble Mr. Justice Kurian Joseph |
Neutral Citation | 2016 INSC 284 |
Petitioner | Punjab & Sind Bank |
Respondent | Punjab Breeders Ltd. & Another |
SCR | [2016] 2 S.C.R. 876 |
Judgement Date | 2016-03-29 |
Case Number | 3197 |
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