JUDGMENT :

SANJEEV NARULA, J.

CM APPL.32079/2022 (seeking condonation of delay in filing counter affidavit)

1. For the grounds and reasons stated in the application, the same is allowed and disposed of. The counter affidavit filed on 19th July, 2022 is taken on record.

W.P.(C) 1591/2022

2. Briefly stated, Petitioner No. 1 – Prayag Polytech Private Limited had availed credit facilities from Respondent – State Bank of India (“SBI”). Subsequently, somewhere in 2018, after deterioration of Petitioner-company’s financial condition and non-availability of funds, SBI declared Petitioner-company’s account to be a Non-Performing Asset (“NPA”) and initiated proceedings before the Debt Recovery Tribunal (“DRT”), State Bank of India v. Prayag Polytech Private Limited & Anr. in (OA/490/2020).

3. In the meantime, on 28th October, 2020, SBI sent a communication to Petitioner-company informing it of a One Time Settlement (“OTS”) scheme of NPAs and offered to settle the total outstanding amount i.e., Rs. 7,15,72,836/- for Rs. 2,29,51,380.10/-. The said proposal was discussed by the board of Petitioner-company in its meeting held on 10th November, 2020 and the acceptance was conveyed to SBI on 11th Novemb