SYSCHEM (INDIA) LIMITED Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) The Petitioner seeks the quashing of a communication dated 21st April, 2020 and a subsequent communication dated 5th August, 2020 of the Respondent/Bank rejecting the Petitioner's One Time Settlement ('OTS') proposals.

(2.) The background facts are that the Petitioner on 11th February, 2012 availed a loan from the Respondent/Bank. According to the Petitioner, the Respondent/Bank declared the loan accounts of the Petitioner as 'NPA' on 29th January, 2015 and issued a demand notice dated 4th February, 2012 under Section 13 (2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 ('SARFAESI Act').

(3.) It is stated in the petition that the Respondent/Bank sent an offer letter dated 29th June, 2018 to the Petitioner inviting it to avail the benefit of an OTS scheme initiated by the Respondent/Bank. By a settlement dated 29th August, 2018, the Respondent/Bank accepted the Petitioner's OTS for a sum of Rs. 1295 lakhs against an earlier amount of Rs. 1290 lakhs, towards full and final settlement of the loan amount. The terms and conditions on which the Petitioner's OTS was accepted read as under: