BHARAT BROADCASTING NETWORK LTD , KARIMPANAL ARCADE, EAST FORT Vs. CORPORATION BANK, REP BY ITS BRANCH MANAGER, THIRUVANANTHAPURAM BRANCH

JUDGEMENT

(1.) The petitioner, a Public Limited Company, owning a T.V. Channel, has taken a term loan of Rs. 2.5 crores from the Corporation Bank, the first respondent. Later, it defaulted. When the Corporation Bank started recovery proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (the 'SARFAESIAct'), the petitioner approached this Court and invited the Ext.P2 judgment. This Court allowed the petitioner to clear the entire outstanding loan in 20 equal monthly instalments.

(2.) The petitioner contends that, as it continued to pay the instalments, it proposed to settle the entire loan under the OTS scheme. On the Bank's direction, the petitioner, to prove its good faith, deposited 25% of the outstanding amount and waited for the Bank's acceptance. But the Bank informed the petitioner that the management was not inclined to accommodate the petitioner's request for OTS.

(3.) The petitioner also alleges that the bank officials again suggested to the petitioner that it could revise its proposal and pursue the matter. Then, though the petitioner has continued to pay the instalments as directed by this Court in Ext.P2, the Corporation Bank communicated to the State Bank of India that it should insist on an NOC from the Corporation Bank if at all the petitioner wanted to continue its banking operations with the SBI, too.