( 1 ) THE present suit was instituted by the plaintiff against the defendants seeking for a decree for declaration in favour of the plaintiff and against the defendants declaring that the plaintiffs have paid the entire dues of the defendant in terms of one time settlement dated 31. 3. 1995 and also for a permanent injunction restraining the defendants, their agents, employees, officers from in any manner revoking the one time settlement made between the parties vide defendant No. l s letter dated 31. 3. 1995.

( 2 ) PURSUANT to a request for loan made by the plaintiff the defendants approved the grant of the aforesaid loan by a letter dated 1. 1. 1987. Pursuant thereto the plaintiff company was granted a Rupee Term Loan and Foreign currency loan. The plaintiff duly availed of the said loan disbursed by the defendants No. 1,2 and 3 and various charges on the assets of the defendant company were given in favour of the defendants No. 1,2 and 3. The plaintiff became irregular in repayment of the said loan and gave a proposal for one time settlement to defendants 1,2 and 3. Pursuant thereto a one time settlement was agreed to between the plaintiff and the defendants under letter dated 31. 3. 1995. According to the plaintiff the plaintiff has been making entire payment in terms of the one time settlement and in fact completed the entire payment which was to be made by the plaintiff company. According to the defendant however, the plaintiff could not adhere to the payment schedule, as mentioned in the one time settlement letter and became irregular in repayment of the amount even in terms of the one time settlement. Accordingly, the plaintiff filed the present suit in this court for the aforesaid relief.

( 3 ) SUMMONS and notices were issued to the defendant and on 1. 10. 1996 an interim order was passed that till the next date the defendants would not revoke the one time settlement dated 31. 3. 1995. As against the aforesaid interim order passed by this court an application has been filed by the defendants under Order 39 Rule 4 CPC seeking for vacation of the aforesaid order. Accordingly, by this order I propose to dispose of the interim application filed by the plaintiff (registered as I. A. No. 4610/1996) as also the application filed by the defendants under Order 39 Rule 4 Civil Procedure Code (registered as I. A. 2216/1997 ).

( 4 ) IT is stated on behalf of the defendant that the present suit filed by the plaintiff is not maintainable in law in view of the bar contained in Section 18 of The Recovery of Debts due to Banks and Financial Institutions Act, 1993. It is further stated that the plaintiff has not repaid the loan in full and as such there exist liabilities which are yet to be discharged by the plaintiff under the one time settlement as well as under the Foreign currency loan and therefore, the interim injunction granted by this court is required to be vacated.

( 5 ) ACCORDING to the plaintiff the terms and conditions of the one time settlement stand satisfied since the plaintiffs have been adhering to the payment schedule as mentioned therein although in payment of one or the other instalment there was some delay. The aforesaid statement of the plaintiff is refuted by the defendants contending inter alia that the plaintiff has failed to discharge its liability even under the One Time Settlement as. well as the debt relating to foreign currency loan. In this connection reference may be made to the various communications issued by the parties and relied upon at the time of arguments by the counsel for the parties. Letter dated 30. 4. 1994 is a proposal from the plaintiff seeking for one time settlement by making payment of principal and over-dues of interest. On 31. 3. 1995 IFCI wrote a letter to the plaintiff intimating the decision of IFCI agreeing in principal to accept the proposal for payment of the entire principal in respect of Rupee Term Loan, Retied loan of ICICI, Crystallized portion of Forei