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IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH AT NAGPUR
ANIL S.KILOR, RAJNISH R.VYAS
Archana Wani D/o Deepak Wani – Appellant
Versus
Indian Bank (Erstwhile Allahabad Bank) – Respondent
| Table of Content |
|---|
| 1. loan default and legal actions initiated. (Para 1 , 2 , 3 , 4 , 5 , 6) |
| 2. petitioner's claims regarding disclosure of benchmarks. (Para 7 , 8 , 9) |
| 3. respondent bank's defense centered on contract terms. (Para 10 , 11 , 12 , 13) |
| 4. court's analysis of obligation and contractual rights. (Para 15 , 16 , 17 , 18 , 19) |
| 5. ratio of case laws and interpretation concerning ots. (Para 22 , 23 , 24 , 25 , 26 , 27 , 28) |
| 6. final decision and continuation of interim order. (Para 30) |
JUDGMENT :
( Per : Rajnish R. Vyas )
The petitioner is a Director and Shareholder of respondent No. 5/ N. Kumar Housing and Infrastructures/ mortgager. Respondent Nos.1 and 2 had extended term loan facility to Respondent No. 4 /principal borrower for the advancement of business of contractor (Development and Construction of Club House cum Resort Project).
2. A request of principal borrower was considered by the respondent Nos. 1 and 2 and accordingly term loan of Rs. 62 crores was granted on 8.3.2011. The sanction of the term loan was at the floating interest and cost of project was initially Rs. 93.70 crores. The tenure of repayment was 110 months. Respondent No. 5 had also executed deed of guarantee an
Banks are not mandated to disclose benchmarks or consider OTS proposals, and courts cannot compel alteration of existing financial agreements under Article 226.
Point of law: Loans by financial institutions are granted from public money generated at the taxpayer’s expense. Such loan does not become the property of the person taking the loan, but retains its ....
(1) No borrower can, as a matter of right, pray for grant of benefit of One Time Settlement Scheme.(2) No bank can be compelled to accept a lesser amount under OTS Scheme despite the fact that Bank i....
The judgment establishes the court's power to grant extension of time for payment under the OTS, based on the RBI guidelines and the principles of equity and justice.
A writ petition is maintainable against a scheduled bank under Article 226 of the Constitution of India, as the bank is performing public functions and is governed by the provisions of the Banking Re....
The Court emphasized the Bank's obligation to act fairly and reasonably, and held that the refusal to grant an extension for OTS payment was arbitrary and violative of constitutional provisions.
Debt Recovery and Monetary Laws - Bank - Loan - Mortgaged properties - Where public money is involved, a Writ Court has to assume a realistic role of a trustee in ensuring that public money is not lo....
OTS scheme is non-discriminatory and ncn- discretionary. Once the Scheme is in place, a borrower or guarantor is entitled to the benefit of the Scheme
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