The main legal point established in the judgment is the validity and finality of the settlement in terms of the MOU, emphasizing the bonafide nature of the settlement and the finality of the Judge's record.

JUDGMENT

(Prayer: Writ Appeal filed under Clause 15 of Letters Patent to allow the above Writ Appeal as against the order dated 18.03.2021 passed in W.P.No.18681 of 2020 on the file of this Court.

Writ Appeal filed under Clause 15 of Letters Patent to allow the above Writ Appeal as against the order dated 18.03.2021 passed in W.P.No.18683 of 2020 on the file of this Court.

Writ Appeal filed under Clause 15 of Letters Patent to allow the above Writ Appeal as against the order dated 18.03.2021 passed in W.P.No.4277 of 2016 on the file of this Court.

Writ Appeal filed under Clause 15 of Letters Patent to allow the Writ Appeal by setting aside the order passed in W.P.No.18681 of 2020, dismiss the writ petition.

Writ Appeal filed under Clause 15 of Letters Patent to allow the Writ Appeal by setting aside the order passed in W.P.No.4722 of 2016 dated 18.03.2021 and allow the petitioner to withdraw the writ petition.

Writ Appeal filed under Clause 15 of Letters Patent to allow the Writ Appeal by setting aside the order passed in W.P.No.18683 of 2020 dated 18.03.2021 and dismiss the writ petition.)

Common Judgment

Sunder Mohan

1. There are six Writ Appeals before us. Challenging the order passed by the learned Single Judge in W.P.Nos.4722 of 2016 and 18681 and 18683 of 2020, the Union Territory of Pondicherry have filed W.A.Nos.1376, 1377 and 1380 of 2022 and Pondicherry Non-Banking Investors, Protection Association for PNL Nithi Limited have filed W.A.Nos.842, 844 and 847 of 2022

2. The brief facts necessary to appreciate the issues involved in the above Writ Appeals are as follows:

(a) The 3rd Respondent PNL Nidhi Ltd., (hereinafter referred to as “Nidhi”) (For the sake of convenience, the parties are referred to as per their ranking in W.A. No. 844 of 2022, as most of the parties are respondents in the said appeal) collected huge deposits and defaulted in returning the deposits on maturity. On the complaint of one of the depositors, an FIR in Crime No. 31 of 2004 was registered against the Nidhi and its Directors under various Penal Provisions including Section 3 of the Puducherry Protection of Interests of Depositors in Financial Establishments Act, 2004 (hereinafter referred to as “Pondicherry Act”). Pursuant to the registration of FIR, the competent authority, under the Pondicherry Act, attached several properties belonging to the Company and its Directors in 2006.

(b) The attached properties could not be sold in view of encumbrances and consequently payments could not be made to the Depositors. In those circumstances, a Memorandum of Understanding (hereinafter referred to as "MOU") dated 15.04.2013 was entered into between the Appellant namely, the Pondicherry Non Banking Investors Protection Association of PNL Nidhi Ltd. (hereinafter referred to as “Pondicherry Depositors”), the Nidhi represented by its promoters P.Kannan and Baskaran, the fourth and fifth Respondents and the Cuddalore Branch Depositors Welfare Association. As per the MOU, the Nidhi agreed to pay 75% of the deposit amount as one time settlement to all the Depositors numbering 3888 (3610 from Pondicherry and 278 from Cuddalore District) which came to Rs.36 Crores within a period of two months from getting orders from the appropriate Court for sale of the attached properties.

(c)Since the payments were not made to the Depositors, the Pondicherry Association filed W.P. No. 11857 of 2013 for Writ of Mandamus directing the Union Territory of Pondicherry, the Nidhi and its promoters to give effect to the MOU entered into between the Pondicherry Association and the third Respondent and settle the amounts due to the Depositors. This Court, by the order dated 20.06.2014, allowed the Writ Petition and directed that all the Depositors shall be paid 75% of the principal amount outstanding as on 31.08.2004 in full and final settlement of their claims. The Learned Single Judge also directed the promoters to make payment of Rs. 36 Crores to the Depositors and after making suc