AI Structured Summary
Not yet generated for this judgment
Judgment
Petitioner is the sole proprietor of M/s. Sri Sai Balaji Agency, who had availed a Cash Credit facility from Punjab National Bank, Budharaja, Sambalpur for a sum of Rs.25,00,000/- on 29th October, 2015. Due to non-servicing of the loan account, it was classified as NPA on 30th December, 2020. It transpires that the proposal offered by the petitioner for an amicable settlement was accepted by the Bank vide Sanction Letter dated 19th January, 2022, whereby after a sacrifice of Rs.6,07,000/-, upon deposit for a sum of Rs.5,00,000/- as upfront amount, the petitioner was required to pay the balance amount of Rs.19,50,000/- within next 90 days, as the total settlement amount was Rs.24,50,000/-. The petitioner admittedly apart from the upfront amount did not pay any amount till 14/15.11.2022 whereby a sum of Rs.5,00,000/- is stated to have deposited.
The prayer in the present Writ Petition is for restraining the Bank from initiating any further recovery process like auction sale etc. in view of the deposits made in November, 2022 as also permitting the payment of the remaining balance after such a huge delay.
After hearing learned counsel for the petitioner, we are not inclined to interfere in the present matter.
It is well settled that any amicable settlement is contractual in nature whereby the loanee has to abide by the terms and conditions of the settlement as the Bank sacrifices substantial outstanding amount while desirous of recovery of whatever they can under the circumstances.
No doubt under exceptional circumstances and subject to testing the BONA FIDES of the loanee, the Court in exercise of equitable jurisdiction can extend the time period for deposit of the amounts in terms of the settlement. However, in the present case, no such circumstances exists warranting grant of any extension.
In view of the above, the present Writ Petition is accordingly dismissed..
...................................................