-1- IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION Writ Petition No.1416 of 2008 Jethanand Visshindas Nagarani ..Petitioner vs. The Veershiva Urban Coop.Bank Ltd. ..Respondent Mr.Ashwin Kamath i/b M/s V.Deshpande and Co. for petitioner. Mr.N.N.Bhadrashete for respondent no.1. CORAM: S.C.DHARMADHIKARI CORAM: S.C.DHARMADHIKARI CORAM: S.C.DHARMADHIKARI J. J. J. 24th June 2008 24th June 2008 24th June 2008 P.C. P.C. P.C. 1. The petition is directed against the Award of the Cooperative Court as confirmed by the lower Appellate Court. The Award directs the petitioner and sureties to pay to the respondent Bank a sum of Rs.3,66,302/- within two months from the date of Award i.e. 14th December, 2007 and to pay interest at the rate of 15% on the amount from 1st October, 1995 till realisation. There are directions given to give credit of the L.I.C. policy proceeds as well. 2. After this matter was argued for some time, both sides agree that following order would meet the ends of justice. 3. Both sides agree that award of the Cooperative Court -2- as confirmed by the lower Appellate Court should be substituted as under; i) The petitioner borrower and opponent nos. 2 and 3 namely, sureties to pay jointly a sum of Rs.3,50,000/- which shall be accepted in full and final settlement by the respondent Bank provided it is paid within a period of 16 weeks (four months) from today in equal monthly instalments. ii) Both sides agree that the sum of Rs.1,00,000/- deposited in this Court shall be allowed to be withdrawn by the respondent Bank and withdrawal would be construed as adjustment towards the claim of Rs.3,50,000/- as awarded. iii) The balance sum of Rs.2,50,000/- shall be paid in instalments of Rs.60,000/- each and last instalment would be of Rs.70,000/- The instalments would be paid so as to complete the balance amount of Rs.2,50,000/- iv) It is agreed by both sides that in default of payment of the first instalment of Rs.60,000/- the entire Award of the Cooperative Court shall be -3- enforceable and executable and then the petitioner as well as the sureties would have to abide by the same. In other words the default of payment of a sum of Rs.60,000/- would be construed as benefit of the order passed by this Court by consent would be forfeited and then the award of the Cooperative Court would become enforceable and executable against both borrower and sureties. v) The parties have agreed that the instalments would b e paid by handing over post dated cheques for the above sums. Needless to state that the consequence of dishonour of the cheques would also follow in law and the petitioner so also the sureties will have to abide by the outcome of those proceedings. vi) If the amounts are paid as agreed before this Court, then, the Bank shall accept them in full and final settlement of all claims under all heads of account and thereafter nothing will be due and payable by the petitioner-borrower and sureties. In that event the award of the Cooperative Court shall stand fully satisfied and marked as such. -4- vii) Needless to state that the Bank would also issue "No Due Certificate" in favour of the petitioner and sureties. 4. Writ petition stands disposed of in the above terms with the Award of the Cooperative Court being substituted as above. This order is passed in presence of the petitioner so also the representative of the respondent Bank. (S.C.DHARMADHIKARI J.) (S.C.DHARMADHIKARI J.) (S.C.DHARMADHIKARI J.)