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CASE NO.: Appeal (civil)  644 of 2007

PETITIONER: L.P. SHASHI KUMAR

RESPONDENT: INDSUTRIAL DEV. BANK OF INDIA LTD.& ORS

DATE OF JUDGMENT: 08/02/2007

BENCH: Dr.AR.LAKSHMANAN & ALTAMAS KABIR

JUDGMENT: J U D G M E N T

(Arising out of SLP(C) No.9949 of 2006)

Dr.AR.LAKSHMANAN,J.  

       Leave granted.         Heard Mr.G.Bikshapathy, learned senior counsel appearing on  behalf of the appellant and Mr.Sanjay Bhatt, learned counsel appearing  on behalf of the contesting respondent No.1 (Industrial Dev.Bank of  India Ltd.).         This appeal was filed against the order passed by the High Court  of Andhra Pradesh dt.27.04.2006 in W.P.No.7951 of 2006 and  W.P.M.P.No.10172 of 2006.  The High Court was approached by the first  respondent herein against the direction given by the A.P.State  Consumer Disputes Redressal Commission directing release of security  to the appellant herein.  The High Court stayed the operation of the  order dt.06.04.2006 passed by the A.P.State Consumer Disputes  Redressal Commission, Hyderabad in CDIA No.33/2006 (CD No.1/2006).  When the matter came up for admission before this Court on 19.06.2006,  this Court passed the following Order :-         "Issue notice returnable within six weeks.            In the meanwhile, the operation of the impugned  order passed by the High Court in  WPMP No. 10172/2006 in  WP No.7951/2006 dt.27.04.2006 shall remain stayed.            In the meantime, either the principal debtor or the  guarantor are at liberty to deposit the money with the bank  so that this Court may consider the prayer for return of  share certificates and title documents to the petitioner- guarantor.  This direction is issued since the GTL is ready  to pay the outstanding principal amount of Rs.4.80 crores  along with 9% interest per annum from December, 2003."

       By Order dt.31.10.2006, the main Special Leave Petition itself was  directed to be listed for final hearing.  Today, when the matter is taken up  for hearing, learned senior counsel appearing on behalf of the appellant  placed before us a communication dt.01.02.2007 addressed to the Deputy  General Manager, Industrial Development Bank of India Limited,  Huderabad.  The said communication reads thus :-         "Date: 01-02-2007           To           The Deputy General Manager,           Industrial Development Bank of India Limited,             Main Branch,            Hyderabad - 500 001

         Dear Sir,

Sub:- Full and Final settlement of Term Loan of   Rs.1000

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lacs. Ref:-1) Our Term Loan account GOLT0101100,   GOLT0101101 and  GOLT0101102     2       Your letter bearing no.IDBI(H)No.5278/CFD(GTL)

With reference to the above cited-subject, please find enclosed  Cheque bearing no.672421 for Rs.54,22,237.00, drawn on M/s  UCO Bank, Abid Circle Branch, towards full and final  settlement of Term Loan referred in (1) above.

We request yourselves to acknowledge the receipt of the above  said payment, issue letter towards full and final settlement of  the said Term loan and release all charges created on the  assets of our company, personal guarantees executed by the  management of our company in favour of IDBI, release pledge  of 15,00,000 equity shares of Goldstone Technologies Ltd.,  held by Goldstone Exports Ltd.and any other  securities/sureties executed in this regard.   

Thanking you

Yours truly,

For Goldstone Technologies Ltd. Sd/- D.P.Sreenivas Executive Director"

       The learned senior counsel for the appellant has also placed  before us a communication by way of reply to the communication  dt.01.02.2007 sent to the Managing Director, Goldstone Technologies  Ltd..  The said letter reads thus :-

"IDBI(H) No.    /CFD(GTL)               February 3, 2007             The Managing Director, Goldstone Technologies Ltd., Amarchand Sharma Complex, S.D.Road,  Secunderabad - 500 003.  

Dear Sir,  Rupee term loan of Rs.1000 lakh-Settlement of dues

       Please refer to your letter dated February 1, 2007  forwarding a cheque for Rs.54,22,237/- (Rupees fifty four lakh  twenty two thousand two hundred thirty seven only) towards  full and final settlement of dues of IDBI.  In this connection, we  advise that on receipt of the aforesaid payment, there are no  dues from the company to IDBI and the term loan account of  Rs.1000 lakh stands fully repaid.  We, therefore, advise you to  arrange to withdraw the cases pending before the A.P.State  Consumer Disputes Redressal Commission, Hyderabad and  Hon’ble Supreme Court of India to enable us to release the  securities etc. at the earliest.

                                               Yours faithfully,                                                       Sd/-                                                    (V.V.Rao)                                                    Dy.General Manager"

         It is thus seen that in compliance of the Order of this Court  dt.19.06.2006, the guarantor deposited the money with the first  respondent. Since the sum of Rs.54,22,237/- (Rupees fifty four lakh

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twenty two thousand two hundred thirty seven only) has been paid by the  appellant to the first respondent bank towards full and final settlement of  the dues of IDBI, the IDBI has requested the appellant herein to withdraw  the cases pending before the  A.P.State Consumer Disputes Redressal  Commission, Hyderabad and in this Court to enable them to release the  securities at the earliest.  In view of the payment of Rs.54,22,237/- made  by the appellant towards full and final settlement of the dues of IDBI, the  said bank is directed to release the securities to respondent No.3  (Goldstone Technologies Ltd.) forthwith.  In view of the final payment  now received by IDBI, there is nothing further survives for the bank to  pursue the Writ Petition No.7951/2006 filed by them before the High  Court.  Therefore, the IDBI is directed to withdraw the said Writ Petition  from the High Court.  Likewise, the appellant is also directed to withdraw  the case filed by them before the A.P.State Consumer Disputes  Redressal Commission, Hyderabad immediately.  The zerox copies of the  letter dt.01.02.2007 and 03.02.2007 are placed on record and will form  part of this Order.         We make it clear that the deposit of sum of Rs.54,22,237/- now  made by the appellant is in addition to the sum of Rs.89,96,636/-  deposited by the guarantor pursuant to our interim order dt.19.06.2006 in  full and final settlement of the bank dues.           The appeal stands disposed of accordingly.         No costs.