THE HON’BLE JUSTICE MOUSHUMI BHATTACHARYA AND THE HON’BLE JUSTICE GADI PRAVEEN KUMAR Ms.Pratyusha Bopanna, learned counsel representing Sri K.Narain Chakravarthy, learned counsel for the petitioners.

Mr.Chithari Prabhakar, learned counsel appearing for the respondents.

ORDER:(Per Hon’ble Justice Moushumi Bhattacharya The petitioners are the Principal Borrowers of a loan availed from the respondent No.1/Bank and seek setting aside of the Communication dated 29.08.2024 issued by the respondents rejecting the petitioner’s Application for an One Time Settlement (‘OTS’) in 2019 on the ground that the petitioners’ loan account has been classified as Fraud on 06.08.2016.

2. The petitioners seek to challenge the Communication dated 29.08.2024 and the classification of their loan account as Fraud contained in the said Communication on the ground that the petitioners were not furnished a copy of the decision dated 06.08.2016 which is contrary to the principles of natural justice and contrary to the decision of the Supreme Court in State Bank of India Vs. Rajesh Agarwal, (2023) 6 SCC 1

3. Learned counsel appearing for the petitioners submits that the respondents have already initiated proceedings