JUDGMENT

1. The captioned writ petition is filed by the petitioner assailing the action of respondent-bank in declining one time settlement scheme to the petitioner by applying Sec. 20A of the Banking Regulation Act, 1949 (hereinafter referred to as 1949 Act' for short).

2. Facts leading to the case are that, petitioner is a partnership firm carrying on its business of rice. The partnership firm availed cash credit / overdraft loan from respondent No.1-bank. The total sum of loan availed is Rs.1, 66, 45, 000.00 payable in 120 monthly installments. The loan account with respondent No.1 bank became a non performing account (NPA). Respondent No.1 - Bank has declared that account as NPA.

3. The petitioner firm approached respondent No.1 - Bank and requested to extend the benefit of One Time Settlement (OTS). Respondent No.1 - Bank by impugned endorsement dtd. 25/7/1999 vide Annexure-H has declined to extend One Time Settlement on the premise that one of the partner of their firm was a Director of respondent No.1 - Bank and therefore, in the absence of approval from Reserve Bank of India, respondent No.1 has declined to approve OTS Scheme.

4. Learned counsel appearing for the petitioner