An oral assurance given by a bank officer for settlement lacked evidentiary support. The key legal principle is the necessity for clear and conclusive evidence in contractual disputes, discrediting unsupported oral agreements.
Debts Recovery Appellate Tribunal (DRAT), Kolkata comprising Justice Anil Kumar Srivastava Bench rejected the respondents' claim and upheld the original Recovery Certificate for the full amount of Rs.25,86,77,476.40p. The DRAT ordered the bank to charge 9% interest from the O.A. filing date, proportionately reducing the amount for subsequent deposits until full payment. The decision set aside the DRT's previous ruling in O.A.522 of 2019. The key legal principle is the necessity for clear and conclusive evidence in contractual disputes, discrediting unsupported oral agreements.
In the DRAT judgment for Appeal No. 128 of 2022 & Appeal No. 127 of 2022-DRAT-Kolkata, the dispute arose from defaults by the respondents (directors of the company) in repaying a loan, resulting in the account being classified as N.P.A. Legal proceedings ensued, leading to a Recovery Certificate for Rs.25,86,77,476.40p. The respondents contended that a bank officer assured them of a settlement if they deposited Rs.21.00 crore, which they did. The DRT found in favour of the respondents, issuing a Recovery Certificate for Rs.4,11,23,833.11p with a waiver of pendente lite and future interest.
The appellants challenged this decision, arguing that no such assurance was given, and the oral agreement lacked legal standing. The DRAT rejected the respondents' claim, emphasizing the absence of conclusive evidence.
The O.A. was allowed for the full amount of Rs.25,86,77,476.40p. Regarding interest, the DRAT ordered the bank to charge 9% interest from the date of filing the O.A., reducing the amount proportionately for deposits made by the respondents until full payment.
The respondents were granted six months to make the remaining deposit without additional interest. The judgment set aside the DRT's earlier decision in O.A.522 of 2019.
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