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Judgment
Petitioner was enjoying a credit facility from State Bank of India (the Bank). When the account became a nonperforming asset, proceedings
have been initiated by the Bank against the secured assets. It is stated that the petitioner then requested the Bank to extend one time settlement
benefits and the Bank then insisted the petitioner to make an up-front payment for considering the request for one time settlement. It is also stated
by the petitioner that he then borrowed and deposited in a non lien account of the Bank a total sum of Rs.80,00,000/- towards up-front payment
so as to enable the Bank to consider the request for one time settlement. The case of the petitioner is that the one time settlement proposal made
by the petitioner did not work out and the petitioner therefore, requested the Bank to return the deposit made in the non lien account. It is stated
that the Bank is refusing to return the deposit made by him in the non lien account. According to the petitioner, the deposit made by him in the non
lien account cannot be appropriated by the Bank on any grounds whatsoever. He, therefore, seeks appropriate directions in this writ petition in this
regard.
Heard the learned Senior Counsel for the petitioner as also the learned Senior Counsel for the Bank.
It is conceded by the learned Senior Counsel for the Bank that the amount referred to by the petitioner in the writ petition is one deposited by
the petitioner in a non lien account. Once the amount is deposited in a non lien account by the borrower for enabling the Bank to consider the
application for one time settlement, it is highly inappropriate for the Bank to appropriate the same towards the liability.
The learned Senior Counsel for the Bank, however, expressed some doubt as to the exact amount deposited by the petitioner in the non lien
account.
In the circumstances, the writ petition is disposed of directing respondents 1 and 2 to return the amounts deposited by the petitioner in the non
lien account of the Bank as part of the arrangement for consideration of the application for one time settlement forthwith. It is made clear that this
judgment will not preclude the Bank in any manner from realising the amounts due from the petitioner, in accordance with law.