NAMAN SMOKELESS FUEL INDUSTRIES Vs. BIHAR STATE CREDIT

JUDGEMENT

(1.) HEARD Mr. Y.V. Giri, Senior Advocate appearing for the petitioner and Mr. Jitendra Singh counsel representing the Bihar State Credit & Investment Corporation Limited (BICICO for short).

(2.) THE petitioner is a borrower from the BICICO. As a result of default in repayment of the loan amount, the dues against it accumulated with the accrued of interest. In those circumstances, the petitioner made ah application for settlement of its dues under the One-Time Settlement scheme (OTS). THE BICICO gave its sanction for the settlement of the loan under OTS vide letter, dated 7.12.2004 (Annexure 4) spelling out the terms & conditions and the instalments for payment of a total sum of Rs. 41,18,000/- plus the amount of surcharge. THE petitioner gave to the BICICO post-dated cheques/demand drafts amounting to a total sum of Rs. 42,94,180/-. Out of those cheques/bank drafts, only a cheque of Rs. two lakhs Page 1175 was encashed and the remaining got dishonoured. THE BICICO then withdrew the OTS facility allowed to the petitioner and intimated him in that regard vide letter dated 16.08.2005, a copy of which is at Annexure-6.

(3.) MR. Giri is willing to pay a sum of Rs. five lakhs through five bank drafts and hands over the demand drafts to MR. Jitendra Singh. So far as the petitioner's offer to clear the balance dues in twelve monthly instalments is concerned, I think the number of instalments prayed for is unreasonably large. The balance dues must be cleared off by the petitioner in no more than six monthly instalments.