MD. AFROZ BAIG Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) This Writ Petition is filed to declare the letter No. SARB: HYD: PMR:MAB 21/22/335, dtd. 31/7/2021 and letter No. SARB: HYD: PMR:MAB: 21-22:350, dtd. 6/8/2021, issued by 2nd respondent as illegal and contrary to the SBI OTS 2020 Circular dtd. 12/10/2020 and OTS sanction letter Ref.No.1149, dtd. 27/11/2020 and consequently set aside the said letters and direct 2nd respondent to receive the cheque bearing No.141267, dtd. 27/7/2021 drawn on Axis Bank Limited, Masab Tank, Hyderabad for Rs.37,87,567.00submitted by the petitioner to 2nd respondent bank on 28/7/2021 as compliance of the final installment pursuant to above said OTS sanction letter dtd. 27/11/2020, and close the loan Account vide A/c.No.35424522518.

(2.) Heard Sri E.Madan Mohan Rao, learned Senior Counsel representing Sri M.Srinivas, learned counsel for the petitioner and Sri Mettu Srinivas Reddy, learned standing counsel for the respondent - Bank. Perused the record.

(3.) The petitioner herein is in real estate business. He constructs flats and sell the same to the prospective purchasers. During the course of business, he had obtained loan facility of Rs.1.55 Crores from 2nd respondent - Bank vide A/c.No.35424522518. He could not repay the said loan amount and therefore, 2nd respondent Bank had declared the account of the petitioner as Non Performing Asset (NPA) on 30/10/2020. Despite several and specific requests, the petitioner did not repay the said loan amount and therefore, 2nd respondent Bank had filed OA No.596 of 2012 before the Debt Recovery Tribunal, Hyderabad (DRT), and the same was decreed on 17/8/2015 directing the petitioner to pay an amount of Rs.1,63,89,562.15ps.