SUMANTHI POLUSANI Vs. UNION BANK OF INDIA

JUDGEMENT

(1.) This Writ Petition is filed to declare the action of respondents Bank in not considering the representation dtd. 30/3/2021, requesting to accept the balance payment of One Time Settlement (OTS) vide Lr.No.0206/45/385, dtd. 6/1/2020, NPA Account No.020630100014879, and under unprecedented COVID-19 crisis as illegal and consequently direct the respondents to accept balance amount of OTS along with interest for delayed six months period immediately setting aside the letter dtd. 31/3/2021 wherein the respondents claimed Rs.99.04 Lakhs in stead of Rs.66.22 Lakhs of balance amount of OTS by disposing the representation dtd. 30/3/2021.

(2.) Heard Sri Sudharshan Malugari, learned counsel for the petitioner and Smt. V. Dyumani, learned Standing Counsel appearing for the respondents. Perused the record.

(3.) The petitioner herein had availed term loan of Rs.180.00 Lakhs from the respondents Bank for the purpose of construction of Rural Godown at Nadigonda Village, Raghunathpally Mandal, Warangal District and committed default in repayment of said term loan in accordance with the agreed terms and the account of the petitioner was declared as NPA on 30/9/2017. Thereafter, respondents Bank invoked provisions of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002(for short, 'the Act') and issued demand notice dtd. 30/10/2017 u/sec.13(2) of the Act demanding the amount of Rs.1,93,96,399.00 as on 29/9/2017 with subsequent interest with contractual rate. Despite receiving and acknowledging the said notice, the petitioner failed to pay the said amount. Therefore, the respondents Bank has filed O.A.No.727 of 2017 before the Debts Recovery Tribunal -1, Hyderabad (DRT) for recovery of said amount together with interest at contractual rate from the date of filing of said application. The same was decreed vide orders dtd. 18/6/2018. Thereafter, the petitioner approached the respondents Bank by way of submitting OTS proposal, vide letter dtd. 6/1/2020. The respondents Bank approved the said OTS proposal and informed the petitioner that she has to pay the amount of Rs.103.50 Lakhs under OTS and upfront amount of Rs.10.25 Lakhs paid by the petitioner will be appropriated towards OTS amount and 15% (20%) shall be within ten days and the balance amount shall be paid within 90 days from the said OTS letter. In the event of failure to repay entire OTS amount within the stipulated time as per sanctioned terms, the OTS stands cancelled and the amount paid under the OTS will be adjusted to the loan account and will not be refunded.