1 LPA No.39/10 IN THE HIGH COURT OF JUDICATURE AT BOMBAY APPELLATE CIVIL JURISDICTION LETTERS PATENT APPEAL NO. 39 OF 2010 IN WRIT PETITION NO. 8639 OF 2009 Sangali Sahakari Bank Ltd., Mumbai ).. Appellant Versus Rajivi Sinha Anchan and others ).. Respondents Mr. D.H. Mehta with Mr.Harvinder Toor i/b Subhash G. Bane for the Appellant. Mr. S.G. Deshmukh i/b M.S. Kumthekar for Respondent No.1. Mr. A.I. Patel, Assistant Government Pleader, for Respondent Nos.2 to 4. Mr. V.B. Sagare, Special Recovery & Sales Officer, and Mr.S.B. Sail, Branch Accountant of Dadar Branch of the Appellant Bank present. CORAM : MOHIT S. SHAH, C.J. AND S.C. DHARMADHIKARI, J. DATED : 14TH JULY 2010 P.C. This appeal under Clause 15 of the Letters Patent is directed against the order dated 15th October 2009 passed by the learned Single Judge in Writ Petition No.8639 of 2009. 2. In view of the consensus arrived at between the parties, the orders we propose to pass in the writ petition itself, it is not necessary to set out all the facts in appeal. 3. The appellant bank is seeking to make recovery of its dues from the respondent borrower on the basis of recovery certificate. According to the appellant bank, the dues of the bank as on 13th July 2010 are as under :- 2 LPA No.39/10 “Principal .. 6,43,568/- Int. Receivable as on 13.07.2010 .. 17,985/- Surcharge (1.75%) .. 52,062/- (On total recovery Rs.29,75,000) Advertisement Charges .. 1,10,600/- Valuation Charges .. 9,331/- Legal Charges .. 8,00,000/- Total ..16,33,546/-” 4. After some discussion and at the suggestion of the Court, the appellant bank has agreed to waive substantial portion of the legal charges and has agreed to accept Rs.9,00,000/- (Rupees Nine lakhs only) as the amount in full and final settlement of all its claims in respect of loan which was the subject matter of Writ Petition No.8369 of 2009, provided the entire amount is paid in appropriate installments by 31st December 2010. 5. Having heard the learned counsel for the appellant bank and the respondent borrower, we find that the rate of interest which was being charged by the appellant bank at the rate of 17% per annum has already been ordered to be slashed down to 12% vide judgment dated 3rd November 2004 of another Division Bench in Writ Petition No.3680 of 2003 and the order dated 24th November 2008 passed in Civil Application No.2119 of 2006. As per the said orders, the rate of interest will be applicable at 12% per annum for the period from 1st July 2002. Thus, the respondent borrower has already been shown sufficient indulgence and the dispute sought to be raised by the learned counsel for the respondent borrower in respect of the legal charges also do not deserve to be examined at length for the simple reason as the appellant bank has agreed to waive substantial portion of more than Rs. 7,00,000/- under the head of “Legal Charges”. As indicated above the appellant bank is ready and willing to accept Rs.9,00,000/- being full and final settlement of its claims amounting to Rs.16,33,546/- as on 13th July 2010. 3 LPA No.39/10 6. In view of the above, we are of the view that the interest of justice will be subserved if this appeal is partly allowed and writ petition itself is disposed of by the following directions :- (i) If the respondent borrower pays the amount of Rs. 9,00,000/- (Rupees Nine lakhs only) to the appellant bank, the payment shall be treated as full and final settlement of the dues of the appellant bank and the recovery certificate issued by the Divisional Joint Registrar, Co-operative Societies, Mumbai dated 7th September 2009 in Recovery Application No.182 of 2009 shall stand discharged if the amount is paid as per the following schedule :- (a) Rs.2,50,000/- shall be paid to the appellant bank by 31st August 2010 and the further sum of Rs.2,00,000/- shall be paid by 30th September 2010 and the balance amount of Rs. 4,50,000/- shall be paid in three equal installments on 31st October 2010, 30th November 2010 and 31st December 2010 respectively. (ii) At this stage we record the statement being made by the learned counsel appearing for the appellant bank that there is a separate loan account for which the appellant bank is entitled to retain the documents of title of the properties in question and the proceedings in respect of the other loan account are pending before the Divisional Joint Registrar, Co-operative Societies, Mumbai. He submits that the statements made in this appeal are without prejudice to the appellant bank’s rights and contentions in the said other proceedings. 4 LPA No.39/10 (iii) After the respondent borrower pays up the entire amount of Rs.9,00,000/- within the aforesaid time schedule, it will be open to the respondent borrower to take out appropriate proceedings for getting back the documents which the respondent borrower claims that they are entitled to claim back. We express no opinion on this. (iv) Both, Letters Patent Appeal and Writ Petition stands disposed of accordingly. (v) It is clarified that if the respondent borrower does not comply with the above time schedule for paying the amount of Rs.9,00,000/-, the Writ Petition shall stand revived and the interim order dated 15th October 2009 of the learned Single Judge shall stand vacated. CHIEF JUSTICE S.C.DHARMADH-IKARI, J.