The court can extend the time for repayment under an OTS scheme, considering the impact of external factors such as the COVID-19 pandemic and the borrower's efforts to raise funds for repayment.

ORDER :

This Writ Petition is filed to declare the letter No. SARB: HYD: PMR:MAB 21-22-335, dated 31.07.2021 and letter No. SARB: HYD: PMR:MAB: 21-22:350, dated 06.08.2021, issued by 2nd respondent as illegal and contrary to the SBI OTS 2020 Circular dated 12.10.2020 and OTS sanction letter Ref.No.1149, dated 27.11.2020 and consequently set aside the said letters and direct 2nd respondent to receive the cheque bearing No.141267, dated 27.07.2021 drawn on Axis Bank Limited, Masab Tank, Hyderabad for Rs.37,87,567/- submitted by the petitioner to 2nd respondent bank on 28.07.2021 as compliance of the final installment pursuant to above said OTS sanction letter dated 27.11.2020, and close the loan Account vide A/c.No.35424522518.

2. Heard Sri E. Madan Mohan Rao, learned Senior Counsel representing Sri M. Srinivas, learned counsel for the petitioner and Sri Mettu Srinivas Reddy, learned standing counsel for the respondent - Bank. Perused the record.

3. The petitioner herein is in real estate business. He constructs flats and sell the same to the prospective purchasers. During the course of business, he had obtained loan facility of Rs.1.55 Crores from 2nd respondent – Bank vide A/c.No.35424522518. He could not repay the said loan amount and therefore, 2nd respondent Bank had declared the account of the petitioner as Non Performing Asset (NPA) on 30.10.2020. Despite several and specific requests, the petitioner did not repay the said loan amount and therefore, 2nd respondent Bank had filed OA No.596 of 2012 before the Debt Recovery Tribunal, Hyderabad (DRT), and the same was decreed on 17.08.2015 directing the petitioner to pay an amount of Rs.1,63,89,562.15ps.

4. In the meanwhile, respondent Bank had issued special circular dated 12.10.2020 offering SBI OTS 2020 scheme, applicable to all the NPAs as on 31.03.2020 with outstanding dues of above Rs.20 lakhs and upto Rs.50 Crores. The said OTS scheme is made by the operators of the respondent Bank throughout the country. The said scheme is a special and unique one and is non-discretionary and non-discriminatory. Pursuant to the said scheme, the petitioner herein had submitted an application on 27.11.2020 and the bank has accepted the same on the following terms and conditions:-

(i) The OTS amount payable by the petitioner is Rs.76,14,995-38ps.

(ii) Application money of Rs.3,81,000/- paid by the petitioner will be appropriated towards the OTS Amount.

(iii) Another 10% of the OTS amount will have to be deposited by the petitioner as first installment within thirty days from the date of sanction of OTS failing which the OTS sanction will be rendered infructuous and OTS treated as failed.

(iv) Another 10% of the OTS amount will have to be deposited by the petitioner as second instalment of money within sixty days from the date of sanction of OTS failing which the OTS sanction will be rendered infructuous and OTS treated as failed.

(v) The balance amount can be paid within 8 months from the date of the sanction letter i.e. on or before 27.07.2021 together with interest @ 6 months MCLR on reducing balance basis effective from the date of the letter dated 27.11.2020 i.e. to be paid on or before 27.07.2021, failing which the OTS Sanction will be rendered infructuous.

(vi) No interest will be charged if the entire OTS amount is paid within six months from the date of the offer letter dated 27.11.2020.

(vii) The petitioner is eligible for additional incentive of 15% on the OTS amount, on making payment of the entire OTS amount.

(viii) The petitioner is eligible for additional incentive of 10% on the OTS amount, if the petitioner pays the entire OTS amount within two months from the date of sanction and 5% if the petitioner pays the OTS amount by 31.03.2021.

(ix) The petitioner is eligible for incentive of 7.5% on the OTS amount, if the petitioner pays 50% of the OTS amount within one month from the date of sanction and 5% if the petitioner pays the50% of the OTS amount within two months from the date of san