KANWAR VILAS RAJ NATH Vs. SYNDICATE BANK

JUDGEMENT

(1.) HEARD Mr. Chagla, Senior Advocate in support of this petition.

(2.) THE petition challenges an order of Debts Recovery Appellate Tribunal ("drat") on two Miscellaneous Appeals arising out of two Miscellaneous applications filed by the petitioners herein to the Debt Recovery Tribunal (DRT) to seek a direction for One Time Settlement (OTS ). These applications having been rejected, the two appeals bearing Miscellaneous Appeal Nos. 358 and 360 of 2003 were carried to the DRAT. The DRAT has dismissed both these appeals by a common order passed on 4th November, 2004 which is impugned in the present petition. These Miscellaneous Applications were made in the original application filed by the respondent-Bank which are pending for final disposal. The writ petition is against an order on Appeal from interlocutory order.

(3.) THE question which arises in these appeals is with respect to the coverage of the Reserve Bank of India (RBI) circular of 29th January, 2003 which modifies the guidelines contained in the earlier circular of 27th July, 2000. The petitioners submit that although the relevant clause of this circular with respect to coverage provides that the revised guidelines will cover Non-Performing Accounts (NPAs) as on 31st March, 2000, what one has to see is as to when the particular account became a Non-Performing Account. It is the further submission of the petitioners that the concerned account became a Non-Performing Account way back in the year 1978-79 and if the amount in petitioners' account claimed by the respondent-Bank at that time is less than what is stipulated in the circular, the respondent is bound to accept the petitioners offer of OTS.