HARA SEEDS Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) The petitioner No.1 is a proprietorship concern and certain cash credit facilities were availed by it from the respondent-Bank since 2007 onwards. The loan account of the petitioner No.1 was declared as 'NPA' on 30/6/2016 and a notice under Sec. 13(2) of the SARFEASI Act was issued on 30/7/2016.

(2.) Petitioners contend that thereafter petitioner No.1 paid substantial amounts with an attempt to regularize the loan account and the respondent-bank upgraded the account to a standard account but subsequently, it has slipped into 'NPA' category on 15/10/2018.

(3.) Petitioners contends that the respondent-bank came up with 'One Time Settlement Scheme' dt.9/9/2020 known as 'Special OTS Scheme for the financial year 2020-21; non-discriminatory and non- discretionary Special OTS : 2020 for NPA account up to Rs.5.00 crore' and as per the said scheme, all accounts with ledger balance less than Rs.5.00 crore as on 31/3/2020 would be eligible for settlement of the loan account.