2022 (10) TMI 187

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....ao, learned Senior Counsel representing Sri M. Srinivas, learned counsel for the petitioner and Sri Mettu Srinivas Reddy, learned standing counsel for the respondent - Bank. Perused the record. 3. The petitioner herein is in real estate business. He constructs flats and sell the same to the prospective purchasers. During the course of business, he had obtained loan facility of Rs. 1.55 Crores from 2nd respondent - Bank vide A/c.No.35424522518. He could not repay the said loan amount and therefore, 2nd respondent Bank had declared the account of the petitioner as Non Performing Asset (NPA) on 30.10.2020. Despite several and specific requests, the petitioner did not repay the said loan amount and therefore, 2nd respondent Bank had filed OA No.596 of 2012 before the Debt Recovery Tribunal, Hyderabad (DRT), and the same was decreed on 17.08.2015 directing the petitioner to pay an amount of Rs.1,63,89,562.15ps. 4. In the meanwhile, respondent Bank had issued special circular dated 12.10.2020 offering SBI OTS 2020 scheme, applicable to all the NPAs as on 31.03.2020 with outstanding dues of above 20 lakhs and upto Rs.50 Crores. The said OTS scheme is made by the operators of the res....

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....t of Rs.41,05,000/- to the respondent bank and did not pay the loan installments i.e. balance amount by 27.07.2021 which is the due date for payment as per the terms of OTS accepted by the respondent bank. 5. The petitioner herein had submitted letter dated 28.07.2021 duly enclosing a cheque bearing No.141267, dated 27.06.2021 drawn on Axis bank Limited, Masab Tank branch for Rs.37,87,567/- (Rs.35,09,995-38ps + interest of Rs.2,77,571-62ps). But the same was not accepted by the respondent - Bank on the ground that the petitioner herein has not paid the aforesaid amount by 27.07.2021 as per the terms and conditions of the OTS Scheme. Therefore, the bank vide letter dated 31.07.2021, cancelled the OTS scheme and requested the petitioner to repay the entire outstanding amount together with interest. Challenging the same, the petitioner herein has filed the present writ petition. 6. Sri E.Madan Mohan Rao, learned Senior Counsel would submit that the petitioner herein is in the real estate business, He sustained huge loss due to the COVID-19 pandemic situation. However, to pay the said amount in terms of OTS, the petitioner herein had sold his agricultural land situated at Cheemal....

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....1.62 paise). Since the petitioner has not paid the said amount by 27.07.2021, 2nd respondent has treated the OTS cancelled and requested the petitioner to pay the entire outstanding amount vide its letter dated 31.07.2021. 9. In proof of the sale of the property, the petitioner herein had filed agreement of sale, dated 27.07.2021. In proof of the availability of funds by 28.07.2021, he had filed the aforesaid statement of account for a period from 01.08.2020 to 28.07.2021. Perusal of the said statement would show that there was balance of Rs.37,80,000/- in the account of the petitioner by 28.07.2021. Thus, there is delay of only one day. 10. 2nd respondent vide letter dated 31.07.2021 returned the aforesaid cheque to the petitioner herein on the ground that the petitioner herein has not paid the said amount within the stipulated time i.e. by 27.07.2021. Moreover, vide letter dated 06.08.2021, 2nd respondent has informed the petitioner that it had appropriated the said amount of Rs.41,05,000/- paid by the petitioner to his loan account. 11. It is relevant to note that in Anu Bhalla Vs. District Magistrate, Pathankot [CWP-5518-2020, dt.22.09.2020(DB)], the Division Bench of ....

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....v. Payments having been accepted by the bank/Financial institutions, after the stipulated date - if the bank or the financial institution has been accepting the payments from the borrower towards the settlement even after the stipulated period of time, it shows that the time was not the essence of contract. It would be apparent from such conduct of the parties, that certain amount of relaxation or flexibility in making the payment of OTS amount is reserved between the parties. v. Bona fide Intent of the borrower to pay the remaining amounts under the settlement- In order to test the bona fide intention of such an applicant, it could be reasonably be tested while asking such an applicant to deposit some further amount, towards the balance amount before calling upon the bank to consider the issue of the extension. If such amounts are deposited under the orders of the court and the bona fides are established, such an applicant would be entitled for a favorable consideration of an application for extension. We would like to add a caveat that if for any reason, the effort doesn't lead to extension of time, as prayed for by the petitioner, then the amount deposited by the borrow....

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....n applicant. Further, accounts which have suffred losses and became NPA on account of having suffered antural calamities, unfortunate accidents, fire incidents, thefts, damage by floods, storm etc., and have come forward for an eventual settlement, can also be considered for extension of time. viii. Irreparable loss and injury to the applicant:- While examining an application for extension of settlement, it could also be seen to be noticed, the extent of an injury to be suffered by an applicant. 12. In Samarth Woolen Mills Vs. Indian Bank (Erstwhile Allahabad Bank) [MANU/PH/0719/2022] in CWP No.15895 of 2020 (O&M), decided on 06.2022 by the Division Bench of Punjab and Haryana High Court, relying on the principle laid down by the Division Bench of the same Court in Anu Bhalla (supra) held that High Court in exercise of its inherent power under Article 226 of the Constitution of India can extend period mentioned in the OTS letter under certain circumstances. In the said case, considering the fact that the Loanee had paid the entire amount of OTS though with some delay and the circumstances of the case justified and granted extension of time by about six months and the sa....