MS H S EXPORT vs INDIAN BANK on 26 November 2025

**J U D G M E N T**

**(Date of Decision: 26.11.2025)**

1. 1. The Applicant has filed this instant Contempt/Miscellaneous Petition on 03.08.2023 with the prayer to summon the opposite party in relation to non-compliance of order dated 13.05.2023 of National Lok Adalat passed in S.A. No. 267 of 2022(M/s H S Exports & Anr. Vs. Indian Bank).

2. 2. It is pleaded by the Applicant that the applicant had preferred Securitization Applications No. 267 of 2022 challenging the auction sale of the respondent bank and correspondence to that the matter was heard and after some dates referred in National Lok Adalat with the consent of the parties for settlement.

3. 3. On 13.05.2023 the applicant as well as the Respondent Bank agreed to settle the account and on the basis of the said agreement the Tribunal has passed final award dated 13.05.2023 in S.A. No. 267 of 2022. The relevant paras of the award is as under:

*"Whereas during the pendency of the case before the DRT, Dehradun the applicant and the Respondent/FI have mutually arrived at a settlement through reconciliation for full and final*

A handwritten signature in blue ink is located at the bottom right of the page. Below the signature is an orange rectangular stamp with some illegible text inside.

**M.A. No.52 of 2023 M/s H. S. Export Vs. Indian Bank**

*settlement of the Bank/FI dues for Rs.60.00Lacs and the entire settled amount of Rs.60.00Lacs has already been deposited by the Applicant by way of direct payment to the Bank. The respondent bank has consented for closure of the account on the receipt of entire settle amount of Rs.60.00Lacs.*

*On receipt of full settled amount respondent bank is directed to issue No Dues Certificate and also to release the original documents/sale deed etc to the eligible person within 7 days of receipt of the settled amount."*

1. 4. It is stated that the applicant had already deposited the entire full and final settlement amount with the bank which is also evident from the award dated 13.05.2023, but the respondent bank did not comply with the award and didn't issue NOC and also did not hand over the sale deed to the applicant.

2. 5. The petitioner subsequent to the issuance of the award made repeated attempts to establish communication with the authorized representative of the respondent bank. However, the responses provided by the bank officer were unsatisfactory and failed to address the concerns raised by the Petitioner.

3. 6. The respondent bank has filed objection vide Diary No.9947 dated 12.10.2023 with affidavit of Mr. Rajeev Kumar Singh, Chief Manager Indian Bank. It is stated by the respondent bank that instant application has been filed under wrong provisions of Law as the award in question dated 13.05.2023 passed by the National Lok Adalat is governed by the Legal Services Act, 1987, and thus, the present application is liable to be dismissed on this very ground alone. With regard to the contentions of the Applicants qua the non-compliance of the award dated 13.05.2023, it is most respectfully submitted that since the loan account of the Applicant was covered under ECGC, unless and until the Applicants liquidate the claim of ECGC amounting to Rs.3,13,790/- the mortgaged documents and the No Objection Certificate cannot be issued to the Applicants and this fact was duly intimated to the Applicants when they visited the office of the respondent bank. The copy of letter dated 21.12.2022 issued by ECGC Ltd. is enclosed as Annexure-CA-1

**M.A. No.52 of 2023**

**M/s H. S. Export Vs. Indian Bank**

1. 7. It is further pertinent to mention at this juncture that the compromise that was reached between the applicants and the respondent bank was only qua the outstanding amount of the applicants towards the bank and not with regards to the claim of ECGC Ltd. Furthermore, it is all the more worthwhile to note here that since the applicants had accepted the terms and conditions of ECGC Ltd. at the time of sanction of the loan account in question, they cannot wriggle out of it and they are legally bound to abide by the same and only when they have adhered to the same the applicants shall be entitled to get back the mortgaged documents from the bank in strict adherence to the guidelines stipulated by ECGC Ltd. which are equally binding on the respondent bank.

2. 8. Heard Ld. Counsel for applicants and Respondent Bank.

3. 9. The plea taken by respondent bank after award passed by National Lok Adalat has no relevance. None is entitled to deviate from the conditions settled in Lok Adalat. There is no provision to reopen the award of Lok Adalat as there is no provision about the same in Legal Services Authority Act. So the plea of respondent bank is not tenable and liable to be rejected. Hence rejected.

4. 10. The respondent bank is also directed to comply order passed in National Lok Adalat without any delay as delay has already been caused otherwise respondent bank shall be liable to pay damages to the applicant after expiry of 30 days of this order Rs.100/- (Rupees One Hundred only) per day.

This petition is disposed of accordingly.

Interim order, if any, vacated. All interim applications are disposed off accordingly.

Record be consigned.

**Dated: 26.11.2025**

(Umesh Kumar Sharma) Presiding Officer DRT, Dehradun