JUDGMENT

Ms. Harpreet Kaur Jeewan, J.

The present writ petition has been filed challenging the possession notice dated 24.06.2021 (Annexure P-3) issued under Section 13 (4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'the Act') and for consideration of representations dated 30.03.2021, 28.09.2021 and 21.04.2022 (Annexures P-2 to P-5) for One Time Settlement submitted by the petitioner.

2. As per the version of the petitioner, he had availed business loan from the respondent vide Customer IDH0270141, Agreement No. CDLD3TF1904030001 dated 23.03.2019and took loan of Rs.68,00,000/-, and mortgaged its property as a collateral security. The petitioner could not pay regular installments due to Covid 19 as such the account of the petitioner-firm was declared NPA on 03.02.2020. The respondent issued Demand Notice dated 11.08.2020 (Annexure P-1) under Section 13 (2) of the Act and raised a demand of Rs.75,02,583/- as on 10.08.2020. The petitioner submitted a representation dated 30.03.2021 (Annexure P-2) and requested for One Time Settlement at Rs.35 lakhs. However, the respondent-financial institution issued a possession notice under Section 13 (4) of the Act (Anneuxre P-3). The petitioner-firm again submitted a request letter dated 28.09.2021 (Annexure P-4) and again offered for One Time Settlement. The said proposal was neither accepted nor rejected. The petitioner-firm again submitted third representation dated 21.04.2022 (Annexure P-5) with the same proposal.

3. Learned counsel for the petitioner submitted that the declaration of the loan account as NPA was against Master Circular Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances dated 02.07.2013.

4. However the Learned counsel for the respondent submitted that the present petition is liable to be dismissed as petitioner has not submitted the alleged representation Annexures P-2, P-3 and P-5. He has filed CM-10503-CWP of 2022 and placed on record Annexure P-6 which is the alleged representation dated 21.04.2022 but it was never submitted before the respondent-financial institution.

5. Learned counsel for the respondent further submitted that the said representation has been rejected by a detailed and speaking order dated 19.07.2022 (Annexure R-1) as the petitioner has offered a meagre amount of Rs.35 lacs against the huge outstanding of Rs.75,02,583/-. It is further submitted that the petitioner has equal and efficacious remedy to approach the DRT under Section 17 of the Act. As such the writ petition is liable to be dismissed.

6. We have considered the aforesaid submissions. The petitioner was granted an opportunity to file an application challenging the rejection of the OTS by the respondent-financial institution on 19.07.2022 as per the interim order dated 20.07.2022 passed by the of the Co-ordinate Bench. The said order is as under:

"CM-10502-CWP-2022

This application is filed for advancement of the date of hearing of the Writ Petition from 28.09.2022 to an early date. Having regard to the reasons assigned in the application, Writ Petition is preponed to today and the same is taken on board.

CM-10503-CWP-2022

Application is allowed as prayed for.

CM-10504-CWP-2022

Notice in the application.

Mr. Harsh Chopra, Advocate, accepts notice on behalf of the non-applicant-respondent.

Since the rejection of the OTS submitted by the applicant-petitioner by the respondent is on 19.07.2022 i.e. yesterday, and since the petitioner intends to challenge the same, till 29.07.2022, petitioner shall not be dispossessed from the secured asset. Petition