Supreme Court – Daily Orders
A.P. Mahesh Co-Operative Urban Bank Ltd vs V Ravi Kumar on 24 July, 2026
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IN THE SUPREME COURT OF INDIA
EXTRAORDINARY APPELLATE JURISDICTION
Petition for Special Leave to Appeal(C)No.24286/2025
A.P. MAHESH CO-OPERATIVE URBAN BANK LTD. Petitioner(s)
VERSUS
V RAVI KUMAR Respondent(s)
O R D E R
1. By our Order dated 10th November, 2025, we had referred the
parties for mediation. We had appointed Hon’ble Mr. Justice R.
Subhash Reddy, former Judge of this court, to act as a mediator
between the parties.
2. We are informed by the learned counsel appearing for the
parties that the mediation has been successful. The Deed of
Settlement dated 27th May, 2026 has been reduced into writing, duly
signed by the parties, including the learned Mediator.
3. The original Deed of Settlement is ordered to be taken on
record, and the same shall be kept with the record of this case.
4. The terms of the Deed of Settlement read thus:-
“DEED OF SETTLEMENT
(Mediated Settlement Agreement under Section 19 of the Mediation Act, 2023)
Arising out of S.L.P. (Civil) No. 24286 of 2025 pending before the Hon’ble
Supreme Court of IndiaThis Deed of Settlement (“Deed” / “Settlement Agreement”) is executed at New
Delhi on this 28th day of April, 2026,BY AND BETWEEN:
ANDHRA PRADESH MAHESH CO-OPERATIVE URBAN BANK LTD. (popularly known as
“Mahesh Bank”), a multi-State scheduled co-operative bank, having its
Registered/Head
Signature Not Verified Office at D.No. 8-2-680/1 & 2, Road No. 12, Banjara Hills,
Hyderabad
Digitally signed by
VISHAL ANAND
– 500 048, represented herein by its Authorised Signatory Mr. K.V.
Ramana
Date: 2026.08.05
18:13:46 IST Murthy, duly authorised vide Authorisation Letter dated 01.07.2025
issued by the Managing Director & CEO (hereinafter referred to as the
Reason:
“Bank” / “First Party”, which expression shall, unless repugnant to the
context or meaning thereof, mean and include its successors-in-interest and
permitted assigns) of the ONE PART;
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AND
MR. V. RAVI KUMAR, S/o Mr. V. Anantha Krishna, aged about 49 years, resident
of 21 Belmont, Lodha Estate, KPHB Colony, Hyderabad – 500 072 (hereinafter
referred to as the “Borrower” / “Second Party”, which expression shall,
unless repugnant to the context or meaning thereof, mean and include his
legal heirs, executors, administrators and permitted assigns) of the OTHER
PART.
The Bank and the Borrower are hereinafter individually referred to as “Party”
and collectively as the “Parties”.
RECITALS / WHEREAS:
A. The Borrower had availed a secured term loan of Rs. 7,70,00,000/-
(Rupees Seven Crores and Seventy Lakhs only) from the Bank on or about
05.09.2015 for purchase of a commercial property, repayable in 108 (one
hundred and eight) Equated Monthly Instalments commencing from
05.10.2015, carrying interest at the rate of 13.5% per annum compounded
monthly, with penal interest of 2% per annum on default. The said loan
was secured, inter alia, by an equitable mortgage of the commercial
property created in favour of the Bank.
B. Upon the Borrower’s account being classified as a Non-Performing Asset
on 05.05.2016, the Bank initiated proceedings under the Securitisation
and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 (“SARFAESI Act”), including the issuance of a Demand
Notice dated 04.10.2016 under Section 13(2) and a Possession Notice
dated 26.12.2017 under Section 13(4) of the SARFAESI Act.
C. The Borrower instituted S.A. No. 425 of 2019 before the Ld. Debts
Recovery Tribunal-II, Hyderabad (“DRT”), wherein I.A. No. 885 of 2023
came to be filed seeking reduction of the contractual rate of interest.
By Order dated 05.07.2023, the Ld. DRT directed that simple interest at
10% per annum be charged on the reduced balance.
D. Aggrieved, the Bank preferred Misc. Appeal No. 35 of 2023 before the
Ld. Debts Recovery Appellate Tribunal, Kolkata (“DRAT”), which by Order
dated 10.05.2024 set aside the Order of the Ld. DRT.
E. The Borrower thereafter filed W.P. No. 22458 of 2024 before the Hon’ble
High Court of Telangana at Hyderabad, which by judgment and Order dated
30.04.2025 set aside the Order of the Ld. DRAT and restored the Order
of the Ld. DRT dated 05.07.2023.
F. Aggrieved by the said judgment dated 30.04.2025, the Bank preferred
Special Leave Petition (Civil) No. 24286 of 2025 (“SLP”) before the
Hon’ble Supreme Court of India, which is presently pending
adjudication. In the said proceedings, a sum of Rs. 1,25,00,000/-
(Rupees One Crore and Twenty-Five Lakhs only) has been deposited by the
Borrower with the Registry of the Hon’ble Supreme Court of India.
G. Having regard to the predominantly commercial character of the disputes
between the Parties and with a view to amicable resolution, the
Parties, by mutual consent, referred the disputes to mediation. Hon’ble
Mr. Justice R. Subhash Reddy, former Judge of the Hon’ble Supreme Court
of India (hereinafter referred to as the “Ld. Mediator”), was appointed
as the Mediator to resolve the disputes under the aegis of mediation in
accordance with the procedure prescribed under the Mediation Act, 2023.
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H. Pursuant to such appointment and reference, the mediation proceedings
were deemed to have commenced under Section 14 of the Mediation Act,
2023, and were conducted in due compliance with Sections 15 to 18 of
the said Act. After several rounds of joint and separate sessions held
between the Parties under the auspices of the Ld. Mediator, the Parties
have, of their own free will and volition, voluntarily and without any
coercion, undue influence, fraud or misrepresentation, and with the
benefit of independent legal advice, arrived at a full and final
amicable settlement of all the disputes, differences and claims between
them on the terms and conditions hereinafter recorded.
I. The Parties confirm that this Settlement Agreement is reduced into
writing in accordance with Section 19(2) of the Mediation Act, 2023,
and shall, upon execution, be submitted to the Ld. Mediator for
authentication in terms of Section 19(3) of the said Act.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND PROMISES
HEREINAFTER CONTAINED, AND WITH A VIEW TO BURY ALL DIFFERENCES AND DISPUTES
BETWEEN THE PARTIES, THE PARTIES HEREBY AGREE, RECORD AND DECLARE AS FOLLOWS:
1. FULL AND FINAL SETTLEMENT AMOUNT
1.1 In full and final settlement of all dues, claims, demands, interest
(contractual, pendente lite, future and penal), costs, charges and
expenses arising out of or in connection with the loan facility
referred to in Recital A above and the disputes set out in Recitals B
to F (collectively, the “Disputes”), the Borrower agrees to pay, and
the Bank agrees to accept, an aggregate sum of Rs. 15,75,00,000/-
(Rupees Fifteen Crores and Seventy-Five Lakhs only) (the “Settlement
Amount”).
2. MODE AND SCHEDULE OF PAYMENT
2.1 The Settlement Amount shall be paid by the Borrower to the Bank in the
following manner:
a) Release of Deposit with the Supreme Court Registry: A sum of Rs.
1,25,00,000/- (Rupees One Crore and Twenty-Five Lakhs only)
presently lying deposited with the Registry of the Hon’ble Supreme
Court of India in the SLP, shall be appropriated towards the
Settlement Amount. The Parties shall jointly move/file appropriate
application(s) before the Hon’ble Supreme Court of India for release
of the said amount, together with accrued interest, if any, in
favour of the Bank, and the Borrower shall render full co-operation
in the said behalf;
b) Payment on Execution: A further sum of Rs. 35,00,000/- (Rupees
Thirty Five Lakhs only) shall be paid by the Borrower to the Bank
simultaneously with and on the date of execution of this Deed of
Settlement, by way of demand draft.
c) Balance Payment: The entire balance of the Settlement Amount, after
appropriating the amounts referred to in sub-clauses (a) and (b)
above, shall be paid by the Borrower to the Bank within sixty (60)
days from the date of execution of this Deed, by way of demand draft
/ RTGS / NEFT to the designated account of the Bank;
d) Grace Period: By way of indulgence and without prejudice to its
rights, the Bank agrees to grant the Borrower a further grace period
of thirty (30) days beyond the period stipulated in sub-clause (c)
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above for making the balance payment, without attracting any default
consequence under Clause 5 below; provided that no further extension
of time shall be granted save with the express written consent of
the Bank.
2.2 Time is and shall be of the essence in respect of the payment
obligations contained in this Clause 2.
2.3 Each payment shall be deemed to have been made only on the date of
unconditional credit of the said amount in the designated account of
the Bank.
3. RELEASE OF SECURITIES AND RETURN OF TITLE DEEDS
3.1 Upon receipt of the entire Settlement Amount in terms of Clause 2 above
(including the appropriation of the Supreme Court deposit and clear
receipt of the balance payment), the Bank shall, within a period of
fifteen (15) working days:
a. return the original title documents in respect of the
secured/mortgaged property to the Borrower against due
acknowledgement;
4. WITHDRAWAL OF PROCEEDINGS / DISPOSAL ON SETTLEMENT
4.1 Upon the receipt of the entire Settlement Amount in terms of Clause 2
above, the Parties shall jointly take steps to:
a. place this Deed of Settlement on record before the Hon’ble Supreme
Court of India and pray for disposal of S.L.P. (Civil) No. 24286 of
2025 in terms of this Settlement;
b. close, withdraw and/or have disposed of, as the case may be, all
proceedings between the Parties pending before any court, tribunal
or authority arising out of or in connection with the said loan
facility, including but not limited to the proceedings in S.A. No.
425 of 2019, I.A. No. 885 of 2023, Misc. Appeal No. 35 of 2023, W.P.
No. 22458 of 2024, complaints/cases under the Negotiable Instruments
Act, 1881 in respect of the dishonoured cheques, and any
application(s) under Section 14 of the SARFAESI Act, all of which
shall be withdrawn / treated as not pressed / disposed of in terms
of this Settlement; andc. execute such joint memos, consent applications, no-objections,
releases and other documents as may be necessary to give effect to
this Clause 4.
4.2 Each Party shall bear its own costs of the legal proceedings and the
mediation costs shall be borne in terms of Clause 11 below.
5. CONSEQUENCES OF DEFAULT
5.1 In the event of failure of the Borrower to pay the balance of the
Settlement Amount within the period stipulated in Clause 2.1(c), as
extended by the grace period stipulated in Clause 2.1(d) above (the
“Outer Date”), this Settlement shall, at the option of the Bank
exercisable by written notice, stand revoked, and the Bank shall be
entitled to:
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a. appropriate any amount(s) already received under this Settlement
(including the amounts referred to in Clauses 2.1(a) and 2.1(b))
towards the outstanding contractual dues, without prejudice to its
rights to claim the balance;
b. revive and continue all proceedings referred to in Clause 4 above as
if this Settlement had not been entered into; andc. pursue all remedies available to it in law, including under the
SARFAESI Act and the Recovery of Debts and Bankruptcy Act, 1993, on
the basis of the original contractual rate of interest of 13.5% per
annum compounded monthly together with penal interest of 2% per
annum, without any reduction or concession.
5.2 The Borrower expressly acknowledges that the reduced figure of the
Settlement Amount has been agreed solely as a measure of compromise and
on the strict condition of timely payment, and shall not, in the event
of default, be construed as the determined liability of the Borrower.
6. MUTUAL RELEASES, DISCHARGE AND NO FURTHER CLAIMS
6.1 Subject to and contingent upon receipt of the entire Settlement Amount
by the Bank in terms of Clause 2 above, each Party hereby
unconditionally and irrevocably releases, discharges and forever
exonerates the other Party (and, in the case of the Bank, its
directors, officers, employees, agents and representatives) from any
and all claims, demands, actions, causes of action, suits, debts, dues,
accounts, reckonings, bonds, covenants, contracts, controversies,
agreements, promises, damages, judgments, executions, expenses and
liabilities whatsoever, whether known or unknown, present or future,
arising out of or in any manner connected with the Disputes.
6.2 The Parties confirm that, save and except for the rights and
obligations expressly created under this Deed, no claim, demand or
grievance whatsoever exists or shall be raised by either Party against
the other arising out of or in connection with the Disputes.
7. CONFIDENTIALITY
7.1 The Parties, the Ld. Mediator and all participants to the mediation
shall maintain strict confidentiality of the mediation proceedings in
terms of Section 22 of the Mediation Act, 2023, including but not
limited to acknowledgements, opinions, suggestions, proposals,
admissions and documents prepared solely for the conduct of the
mediation.
7.2 Notwithstanding the foregoing, this Deed of Settlement may be disclosed
to the extent necessary for its registration, enforcement or challenge
under the Mediation Act, 2023, and for placing the same on record
before the Hon’ble Supreme Court of India and any other forum referred
to in Clause 4 above.
8. TERMINATION OF MEDIATION PROCEEDINGS
8.1 The Parties record that, upon the signing of this Deed of Settlement
and authentication thereof by the Ld. Mediator, the mediation
proceedings between the Parties shall stand terminated in accordance
with Section 24(a) of the Mediation Act, 2023.
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9. AUTHENTICATION, FILING AND ENFORCEMENT
9.1 This Deed of Settlement, after being signed by the Parties, shall be
submitted to the Ld. Mediator for authentication in accordance with
Section 19(3) of the Mediation Act, 2023. The Ld. Mediator shall, after
authenticating the same, provide a signed copy to each of the Parties.
9.2 The Parties acknowledge and agree that this Deed of Settlement, upon
authentication, shall be final and binding on the Parties and shall be
enforceable as if it were a judgment or decree of a Court, in
accordance with Section 27 of the Mediation Act, 2023.
9.3 The Parties may, at their option and within the period prescribed under
Section 20 of the Mediation Act, 2023, cause this Deed of Settlement to
be registered with the Authority constituted under the Legal Services
Authorities Act, 1987, having territorial jurisdiction.
10. COMPLIANCE WITH STATUTORY TIMELINES
10.1 The Parties record that the mediation proceedings have been concluded
within the time limit stipulated under Section 18 of the Mediation Act,
2023, and the present Settlement has been arrived at within the said
period.
11. COSTS OF MEDIATION
11.1 In accordance with Section 25 of the Mediation Act, 2023, all costs of
the mediation, including the fees of the Ld. Mediator and any charges
of the mediation service provider/secretariat, has been paid by the
parties.
12. REPRESENTATIONS AND WARRANTIES
12.1 Each Party represents and warrants to the other that: (a) it has full
power, authority and capacity to enter into this Deed of Settlement and
to perform its obligations hereunder; (b) the execution and performance
of this Deed have been duly authorised; (c) it has entered into this
Deed voluntarily, with full knowledge of its contents and consequences,
after obtaining independent legal advice; and (d) it is not under any
coercion, undue influence, fraud, misrepresentation or mistake.
ENTIRE AGREEMENT, AMENDMENT AND SEVERABILITY
12.2 This Deed of Settlement constitutes the entire understanding between
the Parties in relation to the subject matter hereof and supersedes all
prior negotiations, understandings and arrangements, whether oral or
written, between them.
12.3 No amendment or modification of this Deed shall be valid or binding
unless reduced into writing and signed by both the Parties.
12.4 If any provision of this Deed is held to be invalid or unenforceable,
the remaining provisions shall continue in full force and effect.
13. COUNTERPARTS
13.1 This Deed may be executed in two or more counterparts, each of which
shall be deemed an original, and all of which together shall constitute
one and the same instrument.”
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5. In view of the aforesaid, the parties have preferred a joint
application praying for the following:-
(a) take the Deed of Settlement / Mediated Settlement Agreement
dated 27.05.2026 on record, and record the settlement arrived at
between the parties:
(b) dispose of the present Special Leave Petition (Civil) No. 24286
of 2025 in term of the said Deed of Settlement dated 27.05.2026,
while keeping open and protecting the liberty of the Petitioner-
Bank to pursue its remedies in terms of Clause 5 thereof in the
event of default by the Respondent;
(c) direct the Registry of this Hon’ble Court to release the sum of
Rs. 1,25,00,000/- (Rupees One Crore and Twenty-Five Lakhs only),
together with the entire interest accrued thereon, in favour of the
Petitioner-Bank, and for that purpose to prematurely encash / cause
to be encashed the Fixed Deposit in which the said amount has been
invested, and to remit the said amount, together with accrued
interest, to the Petitioner-Bank by way of electronic transfer
(RTGS/NEFT) to the account of the Petitioner-Bank, the particulars
whereof are set out hereunder / or by way of Demand Draft drawn in
favour of the Petitioner-Bank;
(d) pass such other and further order(s) as this Hon’ble Court may
deem fit and proper in the facts and circumstances of the case.”
6. We clarify that in the event there is any default at the end
of either of the parties, more particularly, on the part of the
respondent, it shall be open for the petitioner – Bank to proceed
further in terms of clause 5 of the Deed of Settlement.
7. We also direct the Registry of this Court to release a sum of
Rs.1,25,00,000/- (Rupees One Crore and Twenty Five Lakh only) with
interest accrued thereon in favour of the petitioner – Bank at the
earliest.
8. With the aforesaid, this petition is disposed of in terms of
the deed of settlement referred to above.
9. Once the entire amount is paid in accordance with the terms of
the Deed of Settlement, the petitioner – Bank shall handover the
title deed(s) to the Respondent.
10. We express our gratitude to Hon’ble Mr. Justice R. Subhash
Reddy for acting as a Mediator and bringing around an amicable
settlement between the parties.
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11. We appreciate the pains taken by the learned Mediator for
bringing around this Deed of Settlement.
12. Pending applications, if any, also stand disposed of.
…………………………………………J
(J.B. PARDIWALA)
…………………………………………J
(K. VINOD CHANDRAN)
NEW DELHI
24TH JULY, 2026.
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ITEM NO.61 COURT NO.5 SECTION XII-A
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Petition(s) for Special Leave to Appeal (C) No(s). 24286/2025
[Arising out of impugned final judgment and order dated 30-04-2025
in WP No. 22458/2024 passed by the High Court for The State of
Telangana at Hyderabad]
A.P. MAHESH CO-OPERATIVE URBAN BANK LTD. Petitioner(s)
VERSUS
V RAVI KUMAR Respondent(s)
[MEDIATION REPORT HAS BEEN RECEIVED]
IA No. 183615/2026 – PASSING APPROPRIATE ORDER OR DECREE UNDER
ARTICLE 142 OF THE CONSTITUTION
IA No. 240796/2025 – PERMISSION TO FILE ADDITIONAL
DOCUMENTS/FACTS/ANNEXURES
IA No. 236672/2025 – PERMISSION TO FILE ADDITIONAL
DOCUMENTS/FACTS/ANNEXURES
Date : 24-07-2026 This matter was called on for hearing today.
CORAM :
HON’BLE MR. JUSTICE J.B. PARDIWALA
HON’BLE MR. JUSTICE K. VINOD CHANDRANFor Petitioner(s) :
Mr. Rishi Kapoor, Adv.
Ms. Gitanjali Kapoor, Adv.
Mr. Ashish Kumar Upadhyay, AOR
Ms. Maitri Goal, Adv.
Mr. Varun Ranjan, Adv.
Ms. Kalpana, Adv.
For Respondent(s) :
Mr. Rohit Kumar, AOR
Mr. Navlendu Kumar, Adv.
Mr. Naveen Kumar, Adv.
Mr. Shudhansu, Adv.
UPON hearing the counsel the Court made the following
O R D E R
1. This Special Leave Petition is disposed of in terms of the
signed order
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2. Pending applications, if any, also stand disposed of.
(VISHAL ANAND) (POOJA SHARMA)
DEPUTY REGISTRAR COURT MASTER (NSH)
(Signed Order is placed on the file)
