Uco Bank is negotiating with Ganapati Exports, the superstar trading house of the Ganapati group of companies, to enter into a joint compromise petition for settlement of disputes regarding application of interest on the net borrowing by the groups flagship.
The Ganapati group of companies has recently come under a cloud as a result of various government agencies.
And in yet another development, the Reserve Bank of India had written a letter to the Enforcement Directorate, Calcutta zonal office, drawing their attention towards non-realisation of export proceeds amounting to over Rs 30 by the Ganapati group of companies namely Ganapati Exports Pvt Ltd and Ganapati Commerce Ltd.
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Sources said the Ganapati Exports Management had approached Uco Bank for an amicable settlement of the dispute relating to recovery of dues between the two against which the bank had filed a suit in the Calcutta High Court.
Uco Bank had filed a suit in the Calcutta High Court against Ganapati Exports for recovery of banks dues and for other reliefs against the company.
The suit, thereafter, was transferred to the Tribunal, West Bengal, in view of the enactment of Recovery of Debts due to bank and Financial Institutions Act 1993 and has pending with the tribunal for the last six-months.
The petition is still under process and yet to be finalised. The next date for hearing has been fixed at March 17, 1997, for final adjudication of the case, said the source on conditions of anonymity.
According to Uco Bank sources, talks with the group initiated last year on the issue fell through. Ruling out any further attempt to arrive at an out-of-court-settlement, the source said, we have now decided to settle the matter in the tribunal.
A company official confirmed there were certain disputes relating to application of interest on our net borrowings, when contacted. However, the same is under process of being amicably settled at an amount of Rs 1.13 crore through a joint compromise petition which is being finalised, the official added.
The terms of settlement, if finalised, is expected to include a certificate for recovery of Rs 1.13 crore against Ganapati Exports among others. However, the recovery officer or the applicant bank (Uco Bank) will not proceed with the recovery proceedings for realisation of the certificate granted in favour of the applicant bank in the event the respondents (Ganapati Exports) pay a sum of Rs 1.17 crore only in full and final settlement of the applicants claim herein on the date of signing the terms of settlement, states the joint compromise petition filed by the Uco Bank.
If in case, Uco Bank is unable to realise the sum of Rs 1.17 crore, by any means, it will be at a liberty to approach the recovery officer to proceed with the matter in accordance with law for realisation of the certificate amount granted in favour of Uco Bank.
According to the source, company executives feel that Uco Bank should vacate and release the various personal or other guarantees and counter guarantees and undertakings given by various directors or any other person, firm, or companies, immediately upon payment and full discharge of the amount as aforesaid and shall take steps for immediate withdrawal of the companys name from the defaulters list with the Reserve Bank of India included at the behest of applicant bank and also inform all other bodies and departments concerned, about their being no further dues or disputes between the bank and the company.
While solicitors Sandersons & Morgans are fighting the case on behalf of Uco Bank, S C Roy Chowdhury & Co is appearing on behalf of the company.