D K GUPTA Vs. ORIENTAL BANK OF COMMERCE

JUDGEMENT

(1.) .THIS writ petition has been filed with a prayer for a mandamus directing the respondent, Oriental Bank of Commerce, to permit the petitioner to avail and settle the account Indo Pacific Trade Corporation under the one time settlement scheme for public sector banks issued by the Reserve Bank of India on 21.09.2003. The petitioner also prayed for a direction that the respondent bank be directed not to initiate legal proceedings against it before the Debt Recovery Tribunal.

(2.) .The petitioner no.1 is a partner of petitioner no.2, which is a registered partnership firm consisting of petitioner no.1 and one Lovleen Singhal.

(3.) .It appears that the petitioner no.2 had taken a loan from the respondent bank, but had not repaid the same. Petitioner no.2 had availed loan facility in two branches of the respondent bank, i.e., at Panchkuiya Raod and Daryaganj, New Delhi. A Settlement was arrived at between the respondent bank and the petitioners in respect of both the branches on 25.05.2000 vide Annexure P-3 of the Writ Petition. Under this settlement, the bank agreed to accept a sum of Rs.143.21 lacs instead of Rs.161.61 lacs due and payable by the petitioners on 01.12.1999. Thereafter further extension was granted by the respondent bank for payment vide bank letters which are at pages 30-45-B of the Writ Petition. Despite these letters, the petitioners did not deposit the amounts as agreed to be paid under the settlement dated 25.05.2000.