JUDGMENT

M.S. Ramachandra Rao, J. -

The Background facts

1. Petitioner is a guarantor to the loan taken by the Cheema Spintex Limited (for short 'the Company') from the State Bank of India (for short 'the Bank').

2. In 1997, the Company had obtained certain facilities from the Bank and at that time the petitioner, who was also a Director of the Company, stood as a guarantor and pledged his assets in support of the loan.

3. According to the petitioner, on account of the reasons beyond the control of the Company, it could not meet its repayment obligations and came to be classified as Non Performing Asset on 13.03.2016.

4. After the Covid-19 Pandemic started in 2020, the Bank floated an OTS scheme called 'SBI OTS Scheme 2020' and pursuant thereto the Bank itself issued a letter dt.26.10.2020 (P1) informing the Company that it is eligible for settlement under the said scheme. In that letter dt. 26.10.2020, OTS amount was fixed at Rs. 2,96,53,886.98. The Company had to deposit minimum of 5% of the OTS amount along with its application and on 21.11.2020 vide letter (P-2), the Company sub