Strict adherence to the terms and conditions of the Scheme is necessary, and failure to meet the pre-conditions justifies the rejection of the application.

JUDGMENT

Sanjeev Narula, J. (Oral)--The Petitioner is aggrieved with rejection of his proposal for One Time Settlement under SBI OTS Scheme 2021/RINN SAMADHAN YOGNA 2021 [hereinafter "Scheme"] conveyed to him vide letter No. SARB/2021-22/410 dated 11th March, 2022, issued by the Asst. General Manager of Stressed Asset Recovery Branch, Dehradun, State Bank of India/Respondent No. 2 [hereinafter "SARB SBI"].

2. The Court has heard counsel for the parties at sufficient length. Briefly stated, as the Petitioner fulfilled the eligibility criteria, in accordance with the provisions of the Scheme, an intimation was given to the Petitioner vide letter dated 25th January, 2021, setting out detailed terms and conditions of the Scheme. As on 31st March, 2021, Petitioner had an outstanding of Rs.1,04,13,979.64/-, which under the Scheme, could be settled on `OTS amount' of Rs.51,90,780.66/-. To avail the benefit of the Scheme, Petitioner was required to deposit 10% of the OTS amount, as a pre-condition for processing the application/proposal.

3. The Petitioner applied under the Scheme on the last date prescribed therein i.e., 21st February, 2022 and deposited 10% of the OTS amount by way of: (a) cash deposit of Rs.1,19,100/-, and (b) Rs.4 lacs by way of cheque dated 21st February, 2022. Sanction of the OTS proposal was to be communicated to Petitioner/Borrower within a period of 7 (seven) days from the date of receipt of application (i.e., latest by 28th February, 2022). When the application of the Petitioner was processed, the cheque of Rs.4 lacs towards part-payment of 10% of the OTS amount was dishonoured on 24th February, 2022, on account of "insufficient funds". State Bank of India/Respondent No. 1 [hereinafter "SBI"] vide impugned communication dated 25th February, 2022 informed the Petitioner that his proposal was rejected. The said communication reads as follows:

"Sir,

Ref: SBI OTS Scheme 2021

With reference to the above mentioned scheme and the proposal given by you, the token money paid vide of cheque 2470012302 dated 21.02.2022 for Rs.4,00,000/- Bank of Baroda, besides cash, has been returned due to insufficient fund in the account. Therefore, the proposal, which has been made under the aforesaid scheme, is treated as rejected. This is for your information."

4. Thereafter, Petitioner vide communication dated 25th February, 2022 addressed to SARB SBI requested for one more opportunity for depositing Rs.4 lacs against the dishonoured cheque. In response thereto, SARB SBI vide letter dated 11th March, 2022 returned the amount of Rs.1,19,100/- vide a banker cheque, which was deposited in cash by the Petitioner and rejected the said request. The said communication reads as under:

"With reference to your letter no. nil dated 25.02.2022 on the captioned subject, we submit as under:

2. After submitted your consent on 21.02.2022 you have deposited Rs.1,19,100.00/- by cash and also submitted a cheque no. 010644 dated 21.02.2022 fir Rs.4.00 lakh against the 10% of OTS amount Rs.(5,19,100.00) as per the term & condition of the scheme.

3. Your above said cheque has been returned unpaid on 24.02.2022 with the reason "insufficient funds".

4. We have already advised about the returning of cheque vide our letter dated 25.02.2022.

5. We further advised you that your request in this matter cannot be considered as the last date for admission in the said scheme along with 10% of the OTS amount was 21.02.2022.

6. Since your application was rejected and accordingly we are returning herewith Rs.1,19,100.00 through Banker cheque no 870989 dated 11.03.2022 favoring M/s Kumar Contractors as per the terms & condition of the scheme."

5. Mr. Vivek Gupta, counsel for the Petitioner, contends that since the Petitioner has been found eligible for settlement under the Scheme, they should be afforded an opportunity to make payment of the OTS amount of Rs.51,90,780.66/-. He argues that the OTS amount was required to be paid within a period of six months from the date of