HON’BLE MRS JUSTI CE SUREPALLI NANDA WRI T PETI TI ON No.33649 of 2023

ORDER:

Heard the learned counsel for the petitioner and also heard learned Counsel appearing on behalf of respondents.

2. The petitioner approached the Court seeking prayer as under:

“It is therefore prayed that the Hon'ble court may be pleased to issue any writ, order, or direction more particularly one in nature of Writ of Mandamus, a. declaring the action of the respondent bank in not closing the OCC Ac No.0329130400047 even after receipt of the entire OTS amounts as per OTS offer dt. 23.09.2016, and b. further declaring the withdrawal of the OTS offer vide letter No. 1204/45/1605 dt.27.03.2020 and letter No.1204/45/124 dt. 18.07.2018 as illegal, arbitrary, null, void, violation of Article 14 and 300A of the constitution of India, in utter violation of principle of natural justice and without following the guidelines under the master guidelines of RBI vide circular dated 19.08.2005, even after receiving the OTS amounts paid by the petitioner under OTS dt. 23.09.2016, and c. consequently direct the respondent bank to release the property 0.5162915/09 12 107 documents of house property Sy.No. 938, Block 12, Srimannarayana, Colony, Kodad and Agricultural land situated in Sy No. 131 Vayalsingaram village, Kodad Mandal., along with no dues certificate, d. further action of respondent bank in issuing the OTS vide Ref No. ARB.OTS.2023-24, dt.27.10.2023 under the SAMADHAN Scheme for Rs.1,15,49,210 plus expenses, as illegal, arbitrary and total non- application of mind, even after receiving the entire OTS amount paid by the petitioner as per the OTS dt. 23.09.2016 and e. to pass such other order or orders as this Hon'ble Court may deems necessary and proper in the interest of justice.” PERUSED THE RECORD.

3. The case of the petitioner in brief is that, the petitioner herein had availed OCC credit facility from respondent No.1 bank vide Ac.No.OCC03291304000047 for an amount of Rs.5.00 crores for working capital purposes. The petitioner deposited about 8 properties as security as per the demand of the respondent bank viz., land & building of the petitioner firm, house plots, residential houses and agricultural and belonging to the partners of the firm. The respondent No.1 bank declared the petitioner OCC account as NPA(Non-performing assets) and issued a demand notice under the provisions of the Security Enforcement Act on 27.01.2015. Subsequently, the petitioner approached the respondent No.1 bank and requested for a One-time Settlement by representation dated 17.08.2016. The respondent bank accepted for one-Time Settlement vide letter No.1204/45/467 dated 23.09.2016 and agreed to settle the loan at Rs.3.35 crores. As per the OTS the petitioner has to pay an amount of Rs.35,00,000/- of acceptance of the OTS on or before 23.03.2017. Accordingly, petitioner has paid Rs.35.00 lakhs by accepting the proposal of the OTS.

4. It is further submitted that, petitioner has paid total amounts of Rs.2.55 crores by 30.11.2017 and the respondent Bank received the same. The petitioner requested the respondent bank to release properties such as Agricultural land situated in Sy.No.835/AA1 Vayalsingarram Village, Kodad Mandal and Open Plot situated in Sy. NO.114/3, admeasuring 1403 sq.yards, by their letter dated 06.12.2017 which were the securities to the loan account.

5. The petitioner further averred that, he has requested the respondent No.1 bank for extension of time to repay the balance of OTS amount and paid the balance OTS amounts in the month of November and December, 2017 and the respondent Bank accepted the payments. The petitioner paid an amount of Rs.50,00,000/-, 10,00,000/-, Rs.1.12 crore and Rs.4,00,000/- on 14.11.2017, 29.11.2017, 30.11.2017 and 30.12.2017 respectively and the respondent bank received the amounts under OTS and released 6 out of 8 properties to the petitioner as per the terms of OTS. The respondent Bank withheld 2 properties even after receipt of the tota