BHANU PROPERTIES LTD. Vs. RESERVE BANK OF INDIA

JUDGEMENT

(1.) The petitioners are aggrieved by the act of Axis Bank in continuing to classify the petitioner no. 1 as fraud despite repayment of the due amount. According to the petitioner, a sum of Rs.7,50,00,000.00 was sanctioned as cash credit facility by the bank. The petitioners, prior to declaration of fraud, repaid a sum of Rs.13,47,96,742.00. The bank claims Rs.2,40,81,903.25 over and above the amount paid by the petitioners.

(2.) An agreement for One Time Settlement (OTS) was entered into by and between the petitioners and the bank and in terms of the OTS, the petitioner paid Rs.2,30,00,000.00 and the said amount has been accepted by the bank. Despite receiving the amount as settled by and between the parties, the bank still continues to classify the petitioner no. 1 as fraud. The petitioners are aggrieved by the same.

(3.) It has been submitted that as the amount due to the bank had already been repaid by the petitioners in terms of the OTS, the bank ought to remove the name of the petitioner no. 1 from the list of fraud.