JUDGMENT

Sabyasachi Bhattacharyya, J. - The petitioner no. 1 is a non-government company registered under the Companies Act, 2013. Petitioner nos. 2, 3 and 4 are its directors. The cash credit facility given to the petitioner no.1-company was classified as Non-Performing Asset (NPA) on February 28, 2020. Subsequently, the respondent-bank issued notice to the petitioners under Section 13(2) of the SARFAESI Act, 2002 on August 17, 2020, apparently followed up by proceedings under Section 13(4) of the 2002 Act, as claimed by the respondent-bank.

2. The petitioners had applied for an One-Time Settlement (OTS).

3. Learned counsel for the petitioners alleges that the bank sat tight over the OTS proposal on one hand and proceeded under the 2002 Act by rendering the company accounts NPA on the other.

4. Learned counsel submits that the OTS proposal of the petitioners comes within the purview of the RBI Master Circular, dated July 1, 2015, which grants relief to corporate entity in the pandemic situation. Placing reliance on Clause 2.1 of the Master Circular, laying down Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances, learned counsel for