Re: Legal Opinion regarding amicable settlement of liability in connection with the Artha Jari Case No. ………….., A/C Company 1.
We have perused the contents of your letter dated 12.12.2006 on the above subject matter. We have perused the queries referred to us. Our opinion is given below:
Query No. 1:
Bank can proceed to settle the matter out of Court and as such there is no legal bar to inform the borrower/judgment debtor in writing regarding settlement of liability of the borrower. However Bank should write the words “Without Prejudice” at the top of any correspondence.
After depositing the settled amount by the borrower/judgment debtor the decree/holder Bank shall have to release the mortgaged property in favour of the mortgagor or their heirs by redeeming the mortgaged property. But there is no scope to hand over the mortgaged documents to the borrower who is not the owner of the mortgaged property.
Please note that since the execution case is pending before the learned Court after receiving the settled amount from the borrower/judgment debtor Bank will have to file an application before the learned executing Court under Order 21 rule 2 read with section 57 of the Artha Rin Adalat Ain, 2003 to record the payment of the judgment debtor and accordingly dispose off the Execution Case upon releasing the mortgaged property.
Should you require any further query, please do not hesitate to contact the undersigned.
For: “The Lawyers & Jurists”