No borrower has a vested right to compel a bank to accept a One Time Settlement, as banks retain discretion in recovery matters.

JUDGMENT

Jasmeet Singh, J. (ORAL)

C.M. No. 44558/2021

1. Exemption allowed, subject to all just exceptions.

2. The application stands disposed of.

W.P.(C) 14117/2021 and C.M. No. 44557/2021

3. We heard arguments and dismissed the petition on 10.12.2021. The reasons were to follow, which we give in the present Order. The present writ has been filed by the petitioners seeking substantially the following prayers;

"(a) Pass appropriate Writs, Orders and/or Directions especially in the nature of certiorari quashing and/or modifying the order dated 07.12.2021 passed by DRT, Jaipur in TSA No. 33 of 2021 (Original SA No. 311 of 2021 given by DRT-I, Delhi being transferred pursuant to the order of this Hon'ble Court) and the letters dated 04.03.2021 & 27.10.2021 written by the Receiver (Respondent No.3);

(b) Pass appropriate Writs, Orders and/or Directions directing the Respondents not to proceed further pursuant to the orders passed on 16.03.2017 & 12.02.2021 by Learned Metropolitan Magistrate in MCA No. 35 of 2017;

(c) Pass appropriate Writs, Orders and/or Directions especially in the nature of certiorari quashing the orders dated 16.03.2017 in MCA No. 35 of 2017 passed under Section 14 of The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and dated 12.02.2021 passed on some new application filed in the year 2021 in MCA No. 35 of 2017 under no provisions of the law by Learned Chief Metropolitan Magistrate, Saket Courts, New Delhi on the proceedings initiated by Respondents No. 1 & 2 directing the Respondent No.3 to take over possession of immovable property bearing F1at No.69, Cat-III, 2nd and 3rd Floor and servant quarter No. 6, Sidhartha Enclave DDA, SFS scheme, Ashram, New Delhi -110014 with further Writs, Orders and/or Directions in the nature of mandamus directing the concerned authorities to abide by due process and Writ of Prohibition prohibiting the Respondents from acting illegally under the pretext of Section 14 of The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 with further Writs, Orders and/or Directions appropriate under the entire scenario of the said provision;

(d) Pass appropriate Writs, Orders and/or Directions in the nature of prohibition directing the Respondents No. 1 & 2 not to invoke provisions of Section 14 of the Act against the Petitioners;"

4. Briefly stating, facts giving rise to filing of the present writ petition are as under:

a. The Petitioner No. 1, along with its Directors availed of certain financial facilities from the Respondents No. 1 & 2 viz. Indian Bank, and State Bank of Hyderabad (Now State Bank of India) for the purposes of augmenting their commercial activities. Certain Credit facilities were renewed and enhanced by the Respondent No.1 from time to time, subject to hypothecation of stocks.

b. The Petitioners' claim that due to non-payment from the side of the buyers of the Petitioners, Petitioner No. 1 started suffering from financial losses, resulting into non- maintenance of financial discipline with the Respondents No. 1 & 2. This led to issuance of certain letters/notices by Respondent Nos. 1 & 2.

c. The Respondent No.1 issued a notice dated 27.05.2016 under Section 13 (2) of the Act classifying the Petitioners' account as NPA since 02.05.2016, and intimated to the Petitioners that the outstanding amount was Rs. 33,14,61,238.18, as on 02.05.2016. Similar legal notices were got issued by Respondent No. 1 demanding the updated amounts from the Petitioners