Point of Law: Doctrine of reasonableness cannot be invoked to amend/alter/modify terms of contract to favour one party.

ORDER :

1. The lis involved in the present batch of writ petitions is similar and therefore, the same were heard together and are decided vide the following common order.

2. Heard Ms. Pratusha Bopanna, learned counsel representing Sri Vardhineni Krishna Mohan, Sri B. Nalin Kumar, learned counsel for petitioners, Dr. K. Lakshmi Narasimha and Smt. Kalpana Ekbote, learned Standing Counsels appearing for respondent Banks. Perused the record.

3. The Petitioners in the writ petitions are registered valuers who challenge the clauses/correspondences which impose a mandatory condition for valuers seeking empanelment to execute a Letter of Indemnity in favour of the Respondent Banks on the ground that the same is arbitrary, unconscionable, illegal and violative of Article 14 of the Constitution of India.

4. The impugned clauses/correspondences require registered valuers seeking empanelment with the Respondent Banks to execute the following letter of indemnity:

(i) Letter of indemnity of Punjab National Bank.

LETTER OF INDEMNITY BY ENGINEERS/VALUERS

To

Name of the Bank,

..............................

Dear Sirs

In consideration of Name of the Bank (hereinafter called the ‘Bank’ which expression shall include its successors and assigns) empanelling me/us on that panel of approved Engineers and Valuers for the purpose of assessing the market value of the properties proposed to be taken as securities for the credit limits granted or to be granted by the Bank to its various borrowers, I/We jointly and severally, extend this letter of indemnity.

Whereas, by the letter of empanelment dated...............the bank has empanelled me/us on their panel of approved Engineers and Valuers for the purpose of assessing the market value of the properties proposed to be taken as securities for the credit limits granted/to be granted by the Bank. I/We jointly and severally agree as follows:

I/We declare that I/We have not been blacklisted/disqualified as per Section 34AB of Wealth Tax Act and would keep the Bank informed about disqualifications, if any, I have not suppressed any material facts from the Bank.

I/We shall duly and faithfully perform and discharge all the duties in the works entrusted by the Bank and in relation to the purposes of empanelment fairly without any favour and discrimination and I/We hereby undertake and agree to indemnify you, your successors and assigns at all times and from time to time and against all loss, damage and all actions. suits, proceedings, expenses, costs, charges and demands arising out of any act, lapses, defaults, negligence, errors, mistakes committed by me/us in performance of my/our professional obligations and I/We also hereby undertake and agree to pay to you on demand sums of money, costs, charges and expenses incurred in respect thereof and also to pay you interest on all such moneys at your ruling rate. We further agree that amount demanded by the Bank shall be conclusive against us.

Yours Faithfully,

Signature

(Name and Official Seal of the Approved Valuer):

(ii) Letter of indemnity of Central bank of India.

To

Central Bank of India

...................................

Dear Sirs,

In consideration of Name of the Bank (hereinafter called the ‘Bank’ which expression shall include its successors and assigns) empanelling me/us on that panel of approved Engineers and Valuers for the purpose of assessing the market value of the properties proposed to be taken as securities for the credit limits granted or to be granted by the Bank to its various borrowers, I/We jointly and severally, extend this letter of indemnity.

Whereas, by the letter of empanelment dated...............the bank has empanelled me/us on their panel of approved Engineers and Valuers for the purpose of assessing the market value of the properties proposed to be taken as securities for the credit limits granted/to be granted by the Bank. I/We jointly and severally agree as follows:

I/We shall duly and faithfully perform and discharge all the duties in the works entrusted b