U. NARASIMHA MURTHY Vs. HDFC BANK LIMITED

JUDGEMENT

(1.) This petition is filed by one of the promoters of second respondent-Private Limited Company. The said Company has availed financial assistance from HDFC Bank. In the year 2013, a proposal for one time settlement was given offering to pay Rs.7.50 Crores towards full and final settlement of the debt.

(2.) In the year 2014, second respondent -Company herein filed W.P.No.45306-307/2014 pleading inter alia that a sum of Rs.50 Lakhs was paid towards processing the OTS proposal. HDFC Bank had accepted the proposal and called upon the second respondent bank to pay Rs.7 Crores on or before 31.03.2013. On 28.03.2013, second respondent company sought for extension of time. On 01.04.2013, bank communicated that request for extension of time was declined and OTS offer was withdrawn. With the said averments, second respondent prayed for a direction against the bank to consider their request for payment of balance amount towards OTS or in the alternative for a direction to refund the sum of Rs.50 Lakhs. The said writ petition was disposed of on 13.09.2019 with a direction to the second respondent to pay Rs.7 Crores with interest at 10% within a period of 40 days from the date of permission given by the bank. The bank was directed to give permission within two weeks from the date of disposal of writ petition. Petitioner filed I.A.No.3/2020 for further extension of time. On 08.05.2020, this Court extended time for a further period of sixty days. Thereafter, several applications were filed. Suffice to note that this Court vide order dated 28.09.2020 has recorded as follows:

(3.) Shri Vivek Reddy, learned Senior Advocate submitted that petitioner is facing financial difficulties and therefore, this writ petitioner may be permitted to pay 50% of the amount and bank may be directed to release him as guarantor and also two immovable properties mortgaged to the bank be released. He submitted that extension of OTS is permissible and relied upon Anu Bhalla and another Vs. District Magistrate, Pathankot and another[1]. [1] (Civil Writ Petition No.5518/2020 decided on 22.09.2020 by High Court of Punjab and Haryana)