GOENKA AGENCIES Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) This writ petition has been filed by the petitioner for the following reliefs :-

(2.) Learned counsel for the petitioner stated that it is a proprietorship firm and had availed financial assistance by way of cash credit facility at respondent-State Bank of India, City Branch, Bhagalpur (hereinafter referred to as 'the SBF for the sake of brevity), but due to some unavoidable circumstances, the said cash credit account became classified as a Non-Performing Account (hereinafter referred to as 'the NPA' for the sake of brevity) in the year 1995, whereafter the SBI proceeded to institute a suit bearing Title Suit No.73 of 1995 before the Civil Court, Bhagalpur for realization of loan amount from petitioner-firm. Subsequently in view of the provisions of the Recovery of Debt Due to Bank and Financial Institution Act, 1993 (hereinafter referred to as 'the DRT Act' for the sake of brevity), the said suit was transferred to the Debts Recovery Tribunal, Patna, where it was registered as PT No. 50/ 1999, in which liability of the petitioner was determined and certificate dated 07.09.2001 was issued by the Debt Recovery Tribunal in favour of SBI under section 19(22) of the DRT Act for an amount of Rs.30,59,662.97/-along with pendente lite and future interests at the rate of 16.5% per annum. Pursuant to the said certificate, proceeding for recovery of the said amount was instituted before the Recovery Officer, Debt Recovery Tribunal, Patna vide R.P Case No. 131/2001 and notice dated 08.06.2004 was issued to the petitioner with'respect to the order of attachment of immovable properties.

(3.) Learned counsel for the petitioner further submitted that thereafter the petitioner approached the SBI on 30.06.2004 with a proposal for settlement under One Time Settlement Scheme (hereinafter referred to as 'the OTS Scheme' for the sake of brevity) promulgated by the Reserve Bank of India (hereinafter referred to as 'the RBI' for the sake of brevity) as OTS Scheme of 2003. Thereafter, the SBI accepted the proposal and sent letter to the petitioner dated 05.07.2004 directing the petitioner to deposit 25% of the upfront amount by 31.10.2004, but the petitioner did not deposit 25% of the said amount, rather deposited a meagre amount by the cutoff date, which is lying in the No-lien Account with the S.B.I..