JUDGMENT

Mohit Kumar Shah, J. - The present writ petition has been filed seeking the following reliefs :-

(i) To issue an appropriate writ(s)/ order(s)/ directions(s) in the nature of Certiorari quashing the letter no. BOB:SARPTN: 2019-20 dated 06.02.2020, whereby and whereunder the respondents have malafidely and arbitrarily refused to issue No Dues Certificate to the Petitioner unless and until further interest is paid.

(ii) To issue an appropriate writ/ order/ direction in the nature of Mandamus declaring that the demand of interest by the respondents upon the OTS amount is not in consonance with the Baroda MSME OTS Scheme No. BCC:BR:111/333 dated 09.07.2019 under which the OTS was sanctioned to the petitioner-Company.

(iii) To issue an appropriate writ/order/direction in the nature of Mandamus directing the respondents to forthwith issue a No Dues Certificate to the petitioner-Company as the complete amount of Rs. 240 lakhs under the OTS sanction has been duly paid by the petitioner-Company in terms of the Baroda MSME OTS Scheme.

(iv) To issue an appropriate writ/order/direction in the nature of Mandamus directing the respondents to also release all the original collateral security documents in favour of the petitioner-Company and release the personal guarantees of all the Directors/ Guarantors in their individual capacity.

(v) To issue an appropriate writ/order/direction in the nature of Mandamus directing the respondents to remove all charge/mortgage/lien on the assets of the petitioner-Company by issuing appropriate letters to the concerned authorities including BIADA and MCA portal.

2. The brief facts of the case are that the petitionerCompany had established a factory in the year 2008 for manufacturing milk, ghee, panner, dahi, ice-cream and other related milk products. The petitioner- Company had then approached the respondent-Bank of Baroda for availing term loan advance for a sum of Rs. 200.00 lacs and the same was sanctioned by the respondent-Bank in the month of February, 2008 vide letter dated 12.03.2008. Without going into the details and history of the case, it would suffice to state here that ultimately, the petitioner had submitted a One- time Settlement Proposal vide letter dated 29.08.2019, addressed to the Chief Manager, Bank of Baroda, Asset Recovery Branch, Patliputra Colony, Patna, relevant portions whereof is reproduced herein below :-

As per the discussion held whereby confirm and revise our One Time proposal from Rs. 1,90,000,00/- (Rupees One crore Ninety lac only) to Rs. 2,40,000,00/- (Rupees two crore forty lac only). This amount of Rs. 2,40,000,00/- (Rupees two crore forty lac only) has been agreed by the officials present in this meeting. This is absolute amount including all.

As soon as the Bank agrees with the abovementioned proposal, we shall make a fixed deposit of Rs. 240.00 lacs and submit a zerox copy of the said FDR receipt in order to show my bonafides. Once an OTS sanction letter is received from the competent authority of the Bank, we shall submit/ deposit the said FDR receipt in original to the Bank towards full and final settlement of the loan amount with the assurance that a NO DUES certificate would be immediately issued in favour of the Company. It would also be incumbent upon the Bank to release all security documents in original mortgaged with the Bank. Furthermore, the Bank will withdraw all litigation from all the courts/ DRT.

3. The respondent-Bank by its letter dated 24.09.2019 had sanctioned a compromise proposal for the petitioner in the following terms :-

We are pleased to inform you that out higher authority has sanctioned Compromise Proposal offered by you in tune of Rs. 240.00 lakh (Rupees Two Crore Forty Lac only) towards the full and final settlement of the account in name of M/s Natural Dairy Pvt. Ltd. having book dues of Rs. 61.97 lac in Term Loan Account (18630600001230) & Rs. 32.03 lacs in Term Loan Account (18630600001835) and Rs. 75.59 lac in Cash Credit Account (186