Mr.M.N.Nagaraju Proprietor M/S.Arjun Bulk Carriers v. M/S.Cholamandalam Investment And Finance Company Limited
A.Nos.1818, 161, 163, 165, 167, 1819, 1972, 1973,1974,1975,1976, 1977, 76, 80, 82, 838 to 847, 88, 91, 932, 933, 934, 935, 937,938 and 94 of 2019 PUSHPA SATHYANARAYANA, J.
Today, when the matter is taken up for hearing the learned counsel appearing on either side would submit that the dispute between the par ties have been settled and a Memorandum of Understanding dated 09.10.2019 entered into between the parties,signed by both the parties and their respective counsels has been filed before this Court, which reads as follows:
Memorandum of Understanding This Memorandum of Understanding Executed on this Day of 09th October 2019 BETWEEN
1) M/s.Arjun Bulk Carriers, represented by its Authorized Signatory Mr.Nagaraja M.N and 2) M/s.MRN Logistics represented by its Authorized signatory Mr.Gurumurthy M and 3) M/s.Shirdi Sai Services Represented by its Authorized signatory Mr.Arjun N and 4) Mr.Arjun N, all operating transport business in and carrying its business place at # 135/1, 1st floor, Dr. Rajkumar Road, 1st K Block Rajajinagar, Bangalore-560010, herein after collectively referred as "First Parties"
AND M/s.Cholamandalam Investment and Finance Co., Ltd., represented by its Authorised Signatory Mr. Ravi T J S/o Jayaram having its Branch office at Prestige Libra, 2nd floor, Municipal No. 45 (Old No. 45 & 45/1), Lalbagh Road, (Above Passport Office), Bangalore-1, hereinafter referred as "Second Party"
WHEREAS The First Parties entered into 16 Loan agreement with the Second party for Financial
Assistance for purchase of the below vehicles: Sl.
No.
Borrower Name Agreement No.
Reg. No.
M N NAGARAJ PRO ARJUN BULK CARRIERS XVFPBGO00001679928 KA-02-AD-3744 M N NAGARAJ PRO ARJUN BULK CARRIERS XVFPBGO00001679949 KA-02-AC-7405 M N NAGARAJ PRO ARJUN BULK CARRIERS XVFPBGO00001679959 KA-02-AC-7389 ARJUN N PROP SHIRDI SAI SERVICES XVFPBGO00001680316 KA-02-AC-5022 ARJUN BULK CARRIERS PROP NAGARAJU XVFPBGO00001680320 KA-02-AB-1431 ARJUN N XVFPBGO00001680327 KA-02-AB-3939 ARJUN BULK CARRIERS PROP NAGARAJU XVFPBGO00001680336 KA-02-AB-1422 ARJUN N XVFPBGO00001690050 KA-02-AB-1086 SHIRDI SAI SERVICES XVFPPYA00001867233 KA-02-AE-5829 MRN LOGISTICS XVFPPYA00001867251 KA-02-AE-5661 SHIRDI SAI SERVICES XVFPPYA00001867273 KA-02-AE-4824 ARJUN BULK CARRIERS XVFPPYA00001867274 KA-02-AE-5227 MRN LOGISTICS XVFPPYA00001867277 KA-02-AE-4635 ARJUN BULK CARRIES XVFPPYA00001867279 KA-02-AB-9232 ARJUN BULK CARRIERS XVFPPYA00001867283 KA-02-AB-1413 ARJUN BULK CARRIERS XVFPPYA00001872151 KA-02-AB-9214
2) After availing loan facility, the First parties, due to their reasons, defaulted to remit the EMI's with the Second Party and the Second party was forced to take custody of the below vehicles as per rights under the loan agreement: Sl.
No.
Borrower Name Agreement No.
Reg. No.
M N NAGARAJ PRO ARJUN BULK CARRIERS XVFPBGO00001679959 KA-02-AC-7389 ARJUN N PROP SHIRDI SAI SERVICES XVFPBGO00001680316 KA-02-AC-5022 ARJUN BULK CARRIERS PROP NAGARAJU M XVFPBGO00001680336 KA-02-AB-1422 SHIRDI SAI SERVICES XVFPPYA00001867233 KA-02-AE-5829 MRN LOGISTICS XVFPPYA00001867251 KA-02-AE-5661 SHIRDI SAI SERVICES XVFPPYA00001867273 KA-02-AE-4824
ARJUN BULK CARRIERS XVFPPYA00001867274 KA-02-AE-5227 MRN LOGISTICS XVFPPYA00001867277 KA-02-AE-4635 ARJUN BULK CARRIES XVFPPYA00001867279 KA-02-AB-9232 ARJUN BULK CARRIERS XVFPPYA00001867283 KA-02-AB-1413 ARJUN BULK CARRIERS XVFPPYA00001872151 KA-02-AB-9214
3) The Second Party has sold the vehicles pertaining to below mentioned 9 loan accounts and first party has filed the objection before RTO and due to the said objection, buyer could not get the name transfer done in the RC and RC transfer is pending. However now as the settlement arrived at, the first party has agreed to take back the objections filed before the concerned RTO immediately and extend necessary support and co-operation for effecting name transfer and the buyer can change the RC in the name of buyer or buyers specified / authorized any party and Second party has agreed to waive off the short fall amount of ₹18,00,880/- (Rupees Eighteen Lakhs Eight Hundred and Eighty only) for below mentioned 9 loan accounts only on successful completion of Name transfer of vehicles before RTO with respect to below mentioned 9 loan accounts.
Second party will thereafter release the No Due Letters for these sold 9 vehicles related loan accounts on completion of the RTO formalities of name transfer and completion of the last payment as per timelines mentioned in Clause 5.
The first parties waives their right, claim or ownership or whatsoever over the below mentioned 9 loan account vehicles and the second party specifically agrees that inpursuant to the relinquishment of right by the first parties over the 9 vehicles and as stated by the second party that vehicles are already sold, the second party has no claim, due, arrears, difference or whatsoever over the said subject 9 loan vehicles from the first parties subject to successful completion of name transfer and upon execution of this memorandum of understanding and only on successful completion of name transfer, the contract terms and condition relating to the said 9 vehicles comes to an end and both the parties have no claim against each other. Sl Agreements Customer Name Total Due Reg No.
XVFPPYA00001867251 MRN LOGISTICS ₹ 4,48,372.00 KA-02-AE-5661 XVFPPYA00001867273 SHIRDI SAI SERVICES ₹ 4,19,722.00 KA-02-AE-4824 XVFPPYA00001867277 MRN LOGISTICS ₹ 4,40,052.00 KA-02-AE-4635 XVFPPYA00001867279 ARJUN BULK CARRIES ₹ 1,67,326.00 KA-02-AB-9232 XVFPBGO00001680336 ARJUN BULK CARRIERS PROP NAGARAJU M N ₹ 0KA-02-AB-1422 XVFPBGO00001679959 M N NAGARAJ PRO ARJUN BULK CARRIERS ₹ 2,44,999.70 KA-02-AC-7389 XVFPBGO00001680316 ARJUN N PROP SHIRDI SAI SERVICES ₹ 0KA-02-AC-5022 XVFPPYA00001867274 ARJUN BULK ₹ 16,852.26 KA-02-AE-5227
CARRIERS XVFPPYA00001867283 ARJUN BULK CARRIERS ₹ 63,557.00 KA-02-AB-1413 Total= ₹ 18,00,880.96
4) As on 28.09.2019, the First Parties apart from the above mentioned amounts in Para # 3, are in due to the Second Party for a sum of Rs.54,31,668/- (Rupees Fifty fours lakh Thirty one Thousand Six Hundred Sixty Eight only). On the basis of requests by First Parties, the Second Party has considered the request and agreed to settle all the below mentioned 7 loan accounts wherein vehicles are not yet sold and are in custody of the First Party (5) and Second Party (2) in totem and both the parties have agreed to settle the below mentioned 7 Accounts amicably at a consolidated full and final settlement amount of Rs.45,00,000/- (Forty Five Lakh Only) against the total due for Rs.54,31,668/- as on date for the below mentioned 7 loan accounts Sl Agreements Customer Name Total Due Reg No.
XVFPPYA00001872151 ARJUN BULK CARRIERS ₹ 12,03,672.00 KA-02-AB-9214 XVFPPYA00001867233 SHIRDI SAI SERVICES ₹ 16,50,481.00 KA-02-AE-5829 M N NAGARAJ PRO ARJUN BULK CARRIERS ₹ 6,19,203.00 XVFPBGO00001679928 KA-02-AD-3744 ARJUN BULK CARRIERS PROP NAGARAJUM ₹ 5,74,552.00 XVFPBGO00001680320 KA-02-AB-1431 M N NAGARAJ PRO ARJUN BULK CARRIERS ₹ 4,74,167.00 XVFPBGO00001679949 KA-02-AC-7405 XVFPBGO00001690050 ARJUN N ₹ 4,61,882.00 KA-02-AB-1086 XVFPBGO00001680327 ARJUN N ₹ 4,47,711.00 KA-02-AB-3939 Total ₹ 54,31,668.00
5) The First parties have agreed to pay the said agreed settlement amount of Rs. 45,00,000/- by way of RTGS or Demand Draft as per below schedule without fail, a)Rs.7,50,000/- (Seven Lakh Fifty Thousand) to be paid on or before 15-10-2019. b)Rs 7,50,000/- (Seven Lakh Fifty Thousand) to be paid on or before 30-10-2019
c)Rs 7,50,000/- ( Seven Lakh Fifty Thousand) to be paid on or before 28-11-2019 d)Rs 7,50,000/- ( Seven Lakh Fifty Thousand) to be paid on or before 28-12-2019 e)Rs 7,50,000/- ( Seven Lakh Fifty Thousand) to be paid on or before 28-01-2020 f) Rs 7,50,000/- ( Seven Lakh Fifty Thousand) to be paid on or before 28-02-2020 Encashment of the payment will only be considered as payment made. On remittance of the above said 15 Lakh payment mentioned in clause (a) & (b) within the agreed timelines only, the Second party has agreed to release the NOCs for below mentioned 2 vehicles to First parties within 10-15 working days of the realization of the payment.
S L Agreements Customer Name Reg No.
XVFPBGO0000167992 M N NAGARAJ PRO ARJUN BULK CARRIERS KA-02-ADXVFPBGO0000168032 ARJUN N KA-02-ABIn all the manners to the First Parties and shall have no rights / claims over the said vehicles. The "First Parties" agrees that they have inspected the said vehicles and have no complaint / claim against the physical condition of the said vehicles and has no claim against the Second Party in any manner relating to the same absolving the Second Party in relating to all claims and The First Parties shall also not raise any claim / issue against the Second Party in future also relating to the same.
6) Similarly after negotiation and having discussion among the "First Parties" and "Second Party it has been agreed that the First Parties will pay a sum of Rs.45,00,000/- towards full and final settlement to the Second party on or before 28th Feb 2020 in the manner and timelines set out herein above in clause 5. The Second party shall on the receipt of the full payment of Rs.45,00,000/- release the remaining NOCs for the below mentioned 5 vehicles to first parties within 10 working days from the last payment due and the net settlement amounts being received by the Second Party, Sl Agreements Customer Name Reg No.
XVFPPYA00001872151 ARJUN BULK CARRIERS KA-02-ABXVFPPYA00001867233 SHIRDI SAI SERVICES KA-02-AEXVFPBGO00001680320 ARJUN BULK CARRIERS PROP NAGARAJU M N KA-02-ABXVFPBGO00001679949 M N NAGARAJ PRO ARJUN BULK CARRIERS KA-02-ACXVFPBGO00001690050 ARJUN N KA-02-AB7) In case the First Parties fail to remit the above said settlement amount as mentioned in Clause 5 & 6 above the First Parties agree that they are liable to pay the entire due amount of above mentioned 7 loan accounts cancelling the above mentioned settlement and this MOU becomes null and void.
8) In the event the First Parties remit the above mentioned settlement amount as per the above timelines under Para 5 & 6, then the Second Party shall issue remaining NOC within 10 working days from the last final payment receipt by the Second Party for the vehicles listed in Clause 5 & 6 apart from releasing the 2 vehicles lying in the custody of the Second Party as the remaining 5 vehicles are already in the custody of the First Parties and till the MOU is in force, the second party agrees not to seize or occupy or deal with the vehicles in the custody of the first parties. 9). Meaning less unless specifically stated(my view) (if any dispute don't you want to get intimated )
10) The First Parties agree to withdraw all legal actions / notices / claims against Second Party on fulfillment of the terms of the MOU as relating to the settlement envisaged. The Second Party also agrees to withdraw all legal actions initiated before courts, tribunals including but not limited to withdrawing the garnishee applications / sending or issuing no dues letters or notices to the garnishee/ claims against the first parties on receipt of all payments due.
That this MOU is final, conclusive and binding on the parties and their respective heirs.
a) No Change in terms of this MOU is valid, unless the same is made in writing and signed by both parties hereto b) All / any discussions and undertakings either oral or in writing in relation to the issues mentioned herein above entered prior to this MOU, shall herewith stand cancelled and this understanding shall overrule any such instances. c) Any violation of the instant MOU would automatically empower the SECOND Party in claiming all it's right and interest arising out of the loan agreement and in that event the term of the loan agreement will override the terms of this MOU. d) In case of the FIRST PARTIES failing to comply with the above terms, the MOU stands withdrawn automatically, and entire amount outstanding shall be payable by FIRST PARTIES.
2. Recording the said Memorandum of Understanding dated 09.10.2019, these applications were closed in terms of Memorandum of Understanding. The Memorandum of Understanding dated 09.10.2019 shall form part of this order.
14.10.2019 arr
PUSHPA SATHYANARAYANA, J arr A.Nos.1818, 161, 163, 165, 167, 1819, 1972, 1973,1974,1975,1976, 1977, 76, 80, 82, 838 to 847, 88, 91, 932, 933, 934, 935, 937,938 and 94 of 2019
14.10.2019
PUSHPA SATHYANARAYANA, J.
arrl the efforts undertaken by him in this regard. Considering the same, a further sum of Rs.10,000/- (Rupees Ten Thousand only) is directed to be paid by the applicant as additional remuneration within a period of two weeks from the date of receipt of a copy of this order. The Advocate Commissioner shall stand discharged.
5. In the above circumstances and since nothing further survives in this application, the same stands closed. However, it is made clear that the vehicle shall not be alienated/altered/encumbered without orders in this regard from the Arbitrator. Needless to say, as and when an award is passed, the applicant shall be at liberty to proceed as per law. 14.10.2019 arr A.No.2957 of 2019