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Amarjeet Jolly & Anr. v. Corporation Bank

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 2469 of 2016)Decided 3 Mar 2016
Civil Appeal No. 2469 of 2016
Justice Kurian Joseph · Justice Rohinton Fali Nariman

Background

Corporation Bank had sued Amarjeet Jolly and another for recovery of a debt of US $18,576.91 with 16.5% annual interest, and the Delhi High Court decreed the suit in the Bank's favour in 2012. The debtors appealed to the Supreme Court. During the hearing, the appellants offered to settle by paying a reduced principal with lower interest, which the Bank initially rejected; the Bank then made a counter-offer to accept the full decreed principal amount but at a reduced interest rate of 9% per annum (instead of 16.5%) running from the date of the original suit in 1989, and the appellants accepted this counter-offer.

Decision Breakdown

The Supreme Court disposed of the appeal on the agreed consent terms: the appellants were to pay US $18,576.91 converted at Rs. 15.60 per Dollar, with 9% interest from 17 July 1989, to be deposited with the Bank within nine months. Interest would keep accruing until full deposit, and, as a safeguard for the Bank, if the amount was not deposited within the stipulated period, the judgment would stand automatically recalled and the appeal would stand dismissed, reviving the Bank's original, more favourable decree.

Lesson Learnt

Parties can settle even a long-pending appeal by mutual consent on revised financial terms, but such settlements are often backed by a "self-executing" condition: if the agreed payment isn't made on time, the original, harsher decree automatically springs back into force.

Official source (sci.gov.in)View Judgment (PDF)

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