Case: C.R. Patil Vs. State Of Gujarat

bail was granted by this Court pursuant to which the petitioners were enlarged on bail, no doubt for a temporary period. It is not even the allegation of the respondents that the petitioners have violated terms and/or conditions of the said order passed by this Court. When the petitioners have shown their willingness to pay the amount and the Special Leave Petitions are pending, this Court will consider all aspects when the matters will be taken up for hearing. But in view of the fact that an order was passed by this Court temporarily releasing them on bail is over and Special Leave Petitions await hearing and as stated by learned counsel for the petitioners, the petitioners intend to enter into meaningful negotiations with the respondents and to do all the necessary acts for payment of loan amount, it would be in the interest of justice to enlarge them on bail so as to enable them to make arrangements for such payment. For the foregoing reasons, the application deserves to be allowed and is accordingly allowed. The petitioners are ordered to be enlarged on bail till further orders on their each furnishing a personal bond in an amount of Rs.1,00,000/- (Rupees one lakh only) with two solvent sureties of the like amount to the satisfaction of the Sessions Court, Surat, on the same terms and conditions on which they were released on bail by this Court on March 7, 2005. As is clear, we are allowing bail to the two petitioners persuaded by very peculiar facts and circumstances of this case, and guided mainly by the consideration that their retention in jail would be adverse to the interest of the several investors/depositors of the bank while the latter are likely to be benefited by the release of the petitioners on temporary bail, it is hoped that the petitioners shall make a genuine effort making use of their liberty to clear the debts. If the petitioners are found to have failed in discharging this obligation or misusing their liberty in any way, the order of bail shall be liable to be recalled." 8. Pursuant to the above order, the appellant was released on bail. The learned counsel for the appellant stated that the appellant made sincere efforts and has entered into One Time Settlement (OTS) with the respondent Bank and fully re-paid the amount as per the said settlement. Respondent No. 4-Bank addressed a letter to the appellant in the capacity of Director of M/s AEPL which reads thus; "This is to certify that the abovementioned account No.OD-ODR-011 has been fully repaid as per your application under Special One Time Settlement Scheme (18-5-07) approved by the High Level Committee meeting held on 25-8-2008." 9. The matter was thereafter placed before a two-Judge Bench on September 19, 2006 and the following order was passed; "It is stated by Mr. K.T.S. Tulsi, learned senior counsel appearing for the petitioner(s) that the parties have settled their disputes in terms whereof out of Rs.68 crores, 25% of which would come to Rs.17 crores would be paid by the petitioner(s). It is stated that the petitioner(s) have deposited a total amount of Rs.12 crores by now. The diamond Jubilee Co-operative Bank Ltd. in terms of its letter dated 14.9.2006 has allowed the petitioner(s) to pay balance amount of Rs.5 crores by 4.10.2006. Mr. Tulsi states that petitioner(s) shall pay the balance amount of Rs.5 crores within the aforementioned period." 10. The respondent No. 4-Bank is in liquidation and Official Liquidator is managing the affairs of the Bank who has filed Lavad Case No. 1180/2002 in the Court of Board of Nominees at Surat. He has also informed the Board of Nominees that the defendants in the Lavad Suit (M/s AEPC & Ors.) had fully paid up the full amount under OTS Scheme and the plaintiff (Bank) did not want to proceed with the matter and accordingly it sought permission to withdraw the suit. 11. The said application reads thus; "The defendant of this matter has fully paid up the full amount under the OTS Scheme, which has been agreed in the meeting dated 25.8.2008 of High Level Committee (Gandhinagar), this plaintiff does not want to proceed in this suit and on today withdraw the same unconditionally, which is declare to this honourable court. For, this suit has been withdrawn whatever refund for it is required to be paid, same shall have to be paid in the name of the bank." 12. Necessary permission was granted by the Board of Nominee for withdrawal of the suit and the Lavad Case is no more pending. 13. We have also heard the learned counsel for the State. On behalf of the State it was stated that the entire amount which was required to be paid by M/s AEPC has already been paid and an appropriate order may be passed granting relief in favour of the appellant and the State has no objection if such prayer is granted. 14. From the above facts, it is clear that the amount which was required to be paid by M/s AEPC has already been paid by the appellant herein under OTS. The Bank has, vide its communication dated September 19, 2008 referred to above, accepted the above fact. Again, the Bank which had filed Lavad Case through Official Liquidator in the Court of Board of Nominees, Surat has also withdrawn the said suit in view of settlement and receipt of payment under OTS. The State has also no objection to the said settlement. 15. The learned counsel for the appellant now prays that in view of full payment under OTS, nothing requires to be done by the appellant. The condition imposed by the High Court in the interim order referred to above does not survive and his properties may be ordered to be released from attachment and be made available to him by relieving him of the undertaking given by him. 16. In our opinion, the appellant is entitled to the relief sought.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]14. From the above facts, it is clear that the amount which was required to be paid by M/s AEPC has already been paid by the appellant herein under OTS. The Bank has, vide its communication dated September 19, 2008 referred to above, accepted the above fact. Again, the Bank which had filed Lavad Case through Official Liquidator in the Court of Board of Nominees, Surat has also withdrawn the said suit in view of settlement and receipt of payment under OTS. The State has also no objection to the said settlementThe learned counsel for the appellant now prays that in view of full payment under OTS, nothing requires to be done by theappellant.The condition imposed by the High Court in the interim order referred to above does not survive and his properties may be ordered to be released from attachment and be made available to him by relieving him of the undertaking given by him16. In our opinion, the appellant is entitled to the relief sought.