BHARAJ INDUSTIES Vs. PUNJAB FINANCIAL CORPORATION

JUDGEMENT

(1.) THIS judgment will dispose of Civil Writ Petition nos. 11385 and 11413 of 2007 as similar questions of law and facts are involved in both the cases. However, the facts are noticed from CWP No. 11385 of 2007.

(2.) THE petitioner was sanctioned a term loan of Rs. 6,50,000/- by the respondent-Corporation vide its letter dated 31 -12-1996 (Annexure P-1 ). The availed loan amount by the petitioner could not be repaid due to unavoidable circumstances of the petitioner. The account of the petitioner was declared (NPA) by the respondent Corporation. The respondent Corporation floated One Time settlement (OTS) scheme for settlement of loan. The case of the petitioner was also considered by the respondent Corporation for one Time Settlement for which letter dated 14-6-2003 (Annexure P-2) was issued. The petitioner was advised by the respondent corporation that his loan account has been settled at a tentative settlement amount of rs. 5,51,986/- subject to audit and approval by the Settlement Committee. Through the said letter, the petitioner was also advised to deposit 10% of the above approximate settlement amount. Admittedly, the account of the petitioner was settled at a sum of Rs. 5,55,000/- by the respondent Corporation in its meeting held on 6-8-2003. The petitioner deposited 10% of the OTS amount and as per this scheme the remaining amount of the OTS was to be deposited within two years in 23 equal monthly instalments. As per the averments made by the petitioner, he started making the repayment as per the settlement approved by the respondent Corporation. The petitioner has also placed reliance on the settlement of account (Annexurep-4) in which it has been shown that on 24-10-2006, the petitioner had paid the total amount of OTS and his settlement of account shows 'nil amount' due against him. It is the further case of the petitioner that the total OTS amount was to be deposited upto 31-7-2005. However, due to heavy losses suffered by him, there was delay in making the regular payments as per the schedule and there was some delay in repayment of the total settlement amount. However, the petitioner was allowed by the respondent Corporation to deposit the OTS amount even after the expiry of the period and was assured by the officials of the respondent Corporation that the period of delay will be regularized. However, the petitioner was shocked to receive a letter dated 15-5-2007 (Annexure P-3) from the respondent Corporation informing the petitioner that the OTS of the petitioner has been cancelled and he was directed to make payment of an outstanding amount of Rs. 6,54,257/-with further interest from 1-2-2007. The petitioner has challenged the said action of the respondent Corporation on the ground that the same is illegal, arbitrary and against the well settled principles of law.

(3.) THE writ petition has been contested by the respondent Corporation by filing a written statement admitting therein that under the OTS scheme the account of the petitioner was settled at Rs. 5,55,000/-which was to be paid upto 30-4-2005. However, the petitioner failed to make the payment of entire OTS amount within the stipulated period and there was a delay of more than one year, when the petitioner cleared the entire OTS amount on 24-10-2006. It is the further case of the respondent Corporation that the case of the petitioner for condoning the delay in making the payment of the entire OTS amount was considered by the Executive Committee in its meeting held on 29-8-2007 for condonation of delay. However, the Committee resolved to decline the proposal of condonation of delay in view of the policy decision taken by the Board of directors in its meeting held on 7-3-2007 on the subject that the condonation of delay of more than one year will not be allowed for the payment of OTS amount henceforth and therefore, keeping in view the said decision of the Board of Directors dated 7-3-2007, the Executive Committee of the respondent Corporation declined to condone the delay in the case of the petitioner and the petitioner was informed regarding this decision vide registered letter dated 20-9-2007. Since the petitioner has not paid the one Time Settlement amount within the stipulated period, the OTS stood cancelled and the petitioner is liable to pay the total amount recoverable from him as per the mortgaged deed signed by him and as per the calculation of the respondent Corporation, the outstanding amount w. e. f. 1-11-2007 is Rs. 7,70,652/- against the petitioner.