L.P. SHASHI KUMAR versus INDUSTRIAL DEV. BANK OF INDIA LTD.

Citation: [2007] 2 S.C.R. 379 · Decided: 08-02-2007 · Supreme Court of India · Bench: AR. LAKSHMANAN · Disposal: Disposed off
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Judgment (excerpt)

"'i 
L.P. SHASHI KUMAR 
A 
v. 
INDUSTRIAL DEV. BANK OF INDIA LTD. 
FEBRUARY 8, 2007 
[DR. AR. LAKSHMANAN AND AL TAMAS KABIR, JJ.] 
B 
'i 
Banks/Banking: 
Release of securities-Held, in view of payment made by appellant c 
towards full and final settlement of dues of respondent-Bank, said bank 
would release the securities-Parties would withdraw their respective cases 
.. 
pending before the High Court and the State Consumer Disputes Redressal 
Commission. 
Respondent no. I-bank approached the High Court against the order of D 
the A.P. State Consumer Disputes Redressal Commission directing release 
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of security to the appellant. The High Court stayed operation of the order of 
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the Commission. In the special leave petition filed by the appellant, the 
Supreme Court while issuing notice granted liberty to the principal debtor 
or the guarantor to deposit the money with the bank so that the Court could E 
consider the prayer for return of share certificates and title documents. 
Pursuant to the said order the guarantor deposited the money with respondent 
no.1. 
Disposing of the appeal, the Court 
F 
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HELD: In view of the payment 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 forthwith. Nothing further survives for the bank 
to pursue the writ petition filed by it before the High Court. Therefore, the 
bank is directed to withdraw the said writ petition. Likewise, the appellant is G 
also directed to withdraw the case filed by him before the A.P. State Consumer 
.... -1. 
Disputes Redressal Commission immediately. [Para 6] [383-A-B] 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 644 of2007. 
379 
H 
380 
SUPREME COURT REPORTS [2007] 2 S.C.R. 
A 
From the Final Judgment/Order dated 27.4.2006 of the High Court of 
B 
c 
D 
E 
F 
G 
H 
Andhra Pradesh at Hyderabad in W.P. -:-.lo. 795112006 and W.P.M.P. No. 10172/ 
2006 in W.P. No. 795112006. 
G. Bikshapathy, T. Anamika and A. Chandra Mohan for the Appellant. 
Sanjay Bhatt and Amit Kumar for the Respondents. 
The Judgment of the Court was delivered by 
DR. AR. LAKSHMANAN, J. I. Leave granted. 
2. Heard Mr .G. Bikshapathy, learned seni"r counsel appearing on behalf 
of the appellant and Mr.San jay Bhatt, learned counsel appearing on behalf of 
the contesting respondent No. I (Industrial Dev. Bank of India Ltd.). 
3. This appeal was filed against the o~der passed by the Higl1 Court of 
Andhra Pradesh dt.27.04.2006 in W.P.No.7951 of2006 and W.P.l\f 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. l/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. 1017212006 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." 
4. 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 
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1-- . 
LP. SHA SHI KUMAR v. INDUSTRIAL DEV. BANK OF INDIA LTD. [LAKSHMANAN,l) 3 8 J 
hearing, learned senior counsel appearing on behalf of the appellant placed ·A 
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before us a communication dt.O 1.02.2007 addressed to the Deputy General 
Manager, Industrial Development Bank oflndia Limited, Huderabad. The said 
communication reads thus :-
"Date: 01-02-2007 
B 
To 
The Deputy General Manager, 
Industrial Development Bank of India Limited, 
Main Branch, 
Hyderabad - 500 00 I 
c 
Dear Sir, 
Sub:- Full and Final settlement of Term Loan of Rs. I 000 lacs. 
Ref:-1) Our Term Loan account GOLTOIOl 100, GOLTOIOl 101 and D 
GOLTOIOl 102 
1 
(2) Your letter bearing no
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