FLAVOURS Vs. SECRETARY

JUDGEMENT

(1.) All these writ petitions are filed seeking to quash the show cause notices bearing Nos.WDIC/RM/1099, WDIC/RM/1100 and WDIC/RM/1101 all dated 27.08.2015 issued by the first respondent as per Annexures-U, V and W and for a writ of mandamus directing the respondent to consider as to the eligibility of the petitioners in terms of SBI OTS scheme 2012 as per the directions issued by this Court in W.P. No.6707/ 2013 dated 09.04.2015.

(2.) It is the case of the petitioners that the first petitioner is a Company engaged in the business of manufacturing, processing, extract, distil oleoresins, essential oils, flavours, essences and aromatics either natural or derives and other products. The other petitioners are the Directors of the first petitioner - Firm. The petitioners approached the second respondent to avail loan. Accordingly, loan was sanctioned on 16.03.2016. Later in view of the financial constraints, a revised credit facility was also sanctioned by the bank on 29.09.2007. Similar term loan was also extended by the bank to the sister concern of the petitioner viz., M/s Silver Cloud Estates Private Limited. Having regard to the fact that the entire business of the petitioners is a totally export oriented one and agro based and on account of difficulty in obtaining the raw materials and due to global recession and other factors which were beyond the control of the petitioners, it was unable for the petitioners to clear its dues within the time stipulated and therefore, account of the petitioners was treated as a Non Performing Asset (NPA) as on 30.09.2010. As on the date of declaring the account of the petitioners as NPA, the total outstanding due was Rs.13.22 crores. Thereafter, the respondent bank issued notice dated 14.12.2010 under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, demanding a sum of Rs.14.32 crores. The same was challenged by the petitioners before the Debts Recovery Tribunal in S.A. No.171/2011.

(3.) The Tribunal, by the Order dated 20.12.2011, directed the petitioners to pay a sum of Rs.35 lakhs on or before 20.12.2011. The petitioners, with an intention to comply with the directions issued by the DRT, brought to sale two of the properties belonging to the petitioners which were situated at Mysuru. Since the petitioners were unable to find prospective buyers within the time stipulated by the DRT and the bank was initiating steps to take possession of the properties, the petitioners were constrained to approach this Court in W.P.No.782/2012. This Court, by the Order dated 06.01.2012, stayed all further proceedings pursuant to the Order passed by the DRT. Subsequently, the bank issued one more notice on 30.07.2012 denying the benefit of SBI OTS scheme 2012 to the petitioners, which was subject matter of W.P.No.6707/2013. This Court, after hearing both the parties, by the Order dated 09.04.2015, disposed off the writ petition by setting aside the communication dated 30.07.2012 issued by the bank and directed the bank to reconsider the entitlement of the petitioners to the One Time Settlement as per OTS Scheme 2012, after providing an opportunity of hearing to the petitioners, within a period of three months from the date of the Order. When things stood thus, respondent No.1-The Secretary, Willful Defaulter Identification Committee, issued three show cause notices vide Annexures-U, V and W. Against the said show cause notices, the present writ petitions are filed.