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IN THE HIGH COURT OF ORISSA AT CUTTACK

W.P.(C) No. 15052 of 2017

Sk. Rajab Ali

&.

Petitioner

Mr. Anjan Kumar Biswal, Advocate

-versus-

State of Odisha and others

&.

Opp. Parties

Mr. Swayambhu Mishra,

Additional Standing Counsel

(For Opposite Party Nos. 1 and 2)

Mr. Karunakar Gaya, Advocate

(For Opposite Party Nos. 3 to 5)

CORAM:

JUSTICE K.R. MOHAPATRA

ORDER

Order No.

08.02.2022

14.

1.

This matter is taken up through Hybrid mode.

2.

Petitioner in this writ petition seeks to assail the order

dated 3^rd March, 2017 (Annexure-13) passed by Registrar,

Cooperative Societies, Odisha, Bhubaneswar-Opposite Party

No.2 in refusing to settle the loan account of the Petitioner

under One Time Settlement (OTS) scheme floated by the State

Government under Annexure-6.

3.

Bereft of unnecessary details, facts relevant for proper

adjudication of this case are that the Petitioner had incurred a

loan of Rs.10.00 lakh from the Urban Cooperative Bank

Limited, Main Branch, Tinikonia Bagicha, Buxi Bazar, Cuttack

3Opposite Party No.5 vide loan Account No.BBL-8. Due to

irregular repayment of the instalments, the loan account became

NPA on 31^st March, 2003. Thereafter, the Chief Executive

Officer of the Opposite Party-Bank filed Dispute Case No.276

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of 2003 for recovery of the loan amount of Rs.9,31,400/-, i.e,

Rs.8,64,931 towards principal amount and Rs.66,469/- towards

interest, before the Deputy Registrar, Cooperative Societies. In

the proceeding in Pre-attachment Case No.1 of 2004 the stock

of the Petitioner was attached under Section 105 of the Odisha

Cooperative Societies Act, 1962 (for short, 8the Act9). During

2011, an OTS Scheme was floated by the State Government

under Annexure-6. In the said scheme, last date of receipt of

applications from the borrowers was fixed to 30^th July, 2011.

The date of settlement of the claim under the said Scheme was

fixed to 31^st October, 2011. In order to avail benefit, the

Petitioner made an application on 19^th July, 2011 for settlement

of his loan account under the OTS Scheme. Clause (c) of Para-1

of the said Scheme provided six categories of loan accounts are

not covered under the OTS Scheme. The same are as follows:-

< 1.

Coverage;

xx

xx

xx

(c)

The following categories of loans will not be

covered by the Scheme:

(i)

Cases of willful default, frauds and malfeasance;

(ii)

Loans with tie-up arrangement for recovery (e.g.

loans availed by salary earners);

(iii)

Loans availed of or guaranteed by Directors or

by close relatives of Directors or by firms /

companies /institutions in which the Directors

are interested or by ex-Directors of respective

Urban Co-operative Banks;

(iv)

Loans guaranteed by Government (including

cases where Government guarantee has been

invoked but not honoured by the Government);

(v)

Loans due from Government Departments /

Undertakings;

(vi)

Loans under Government directed programmes=

4.

Materials available on record disclose that the Petitioner

had travelled a number of times to this Court to avail the benefit

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under the OTS Scheme. Amongst others, the order dated 8^th

May, 2014 passed in W.P.(C) Nos.27865 of 2013 and order

dated 25^th November, 2016 passed in W.P.(C) No.9554 of 2015

are worth mentioning.

5.

W.P.(C) No.27865 of 2013 was filed by the Petitioner to

quash the letter dated 18^th November, 2013 issued by the Chief

Executive in-charge of the Opposite Party-Bank rejecting his

OTS application. This Court, vide order dated 8^th May, 2014

(Annexure-10), while setting aside the letter dated 18^th

November, 2013 directed the ADM-cum-Authorized Officer of

the Opposite Party Bank to consider the OTS application of the

Petitioner dated 19^t