2023 (3) TMI 1406

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....ral loan agreements and obtained credit facilities from the appellant - Bank of India, for a total fund base limit of Rs.34.69 crores. The date of disbursement of the loan amounts is 23.12.2013. As there were defaults, the aforesaid credit facilities were classified and declared as Non-Performing Assets (NPA) on 30.09.2014. The outstanding balance towards the principal amount was Rs. 31,87,23,036/-. As on 05.11.2014 As per the appellant - Bank of India, the Corporate Debtor/respondent no.3 - M/s Radheshyam Agro Products Pvt. Ltd. was also liable to pay other debts of Rs. 2,36,23,551/- As on 05.11.2024, interest of Rs. 19,14,32,135/- and penalty of Rs.3,09,74,393/-. These figures relating to the interest and penalty are as on 27.07.2018. ....

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....T has erred in its finding that the One Time Settlement (OTS) proposal dated 01.06.2016 would not extend the period of limitation. This letter for OTS proposal, in our opinion, clearly acknowledges and accepts the jural relationship between the appellant - Bank of India as creditor and the Corporate Debtor/respondent no.3 - M/s Radheshyam Agro Products Pvt. Ltd. as the debtor. The letter clearly accepts that the Corporate Debtor/respondent no.3 - M/s Radheshyam Agro Products Pvt. Ltd. was sanctioned principal amount of Rs.37 crores, and that repayment in various forms to the extent of Rs. 19 crores stands made. Thus, acknowledging that there was substantial liability due and payable towards the principal amount. This letter by the Corpor....

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....and simple admission of the debt is sufficient. See - Food Corpn. of India v. Assam State Coop. Marketing & Consumer Federation Ltd., (2004) 12 SCC 360 Generally speaking, a liberal construction should be given to the statement alleged/stated to be an acknowledgment, but the court must also be conscious to not fasten on a person an admission as to an existing jural relationship by a farfetched process of reasoning. See - Lakshmirattan Cotton Mills Co. Ltd. v. Aluminium Corpn. of India Ltd., (1971) 1 SCC 67 Reliance placed upon Section 23 of the Indian Evidence Act, 1872 23. Admissions in civil cases, when relevant. - In civil cases no admission is relevant, if it is made either upon an express condition that evidence of it is not to be g....