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Judgment
The present writ petition has been filed seeking quashing of notice dated 02.05.2018 (Annexure P-5) issued under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for brevity 'the Act'). Further prayer has been made for direction to the respondents to consider the regularization of account of the petitioner by reducing the cash credit limit or by settling the account under One Time Settlement (OTS) scheme.
The petitioner is proprietorship concern and the present petition has been filed by Proprietor. Authorized Officer, Oriental Bank of Commerce, RRL Cheema Chowk, Ludhiana and Oriental Bank of Commerce, RRL Cheema Chowk, Ludhiana have been arrayed as respondents No.1 and 2 respectively in the writ petition.
The petitioner availed cash credit facility of Rs.20 lakhs on 22.01.2013 from respondent No.2. The credit facility availed was secured by mortgaging land and property bearing MC No.B-XXIV-696, measuring 100 sq. yards, comprised in khasra no. 957, 958, 955, 954 Khata No.537/573, 539/574, 136/140, 1300/1402 as per jamabandi for the year 2007-2008 situated at village Taraf Saidan, HB No. 172, Abaddi known as Mohalla Harcharan Nagar, Tehsil & District Ludhiana. The property was registered in the name of the brother of Proprietor.
The petitioner defaulted in repayment of loan amount. The loan account was classified as Non-Performing Asset (NPA) on 31.07.2017. The respondent Bank issued notice dated 14.02.2018 under Section 13(2)of the Act. As per notice, there was outstanding liability of Rs.20,04,882/- as on 31.01.2018. On receipt of notice, the petitioner approached the respondent-bank on 15.03.2018 with the request that either his account be regularized or be settled under OTS.
During the pendency of the representation, respondent-bank issued notice dated 02.05.2018 under Section 13(4) of the Act, being aggrieved, the present writ petition has been filed.
Learned counsel for the petitioner submitted that petitioner is ready to deposit Rs.5 lakhs immediately and would approach the bank for settlement either by regularizing the account or under OTS.
Notice of motion was issued on 01.06.2018. Status-quo regarding physical possession of the secured asset was ordered to be maintained. The petitoner was directed to submit a proposal for OTS or make a request for regularizing the account which the bank would consider as per its policy, subject to petitioner's depositing Rs.5 lakhs.
Heard learned counsel for both the parties.
As per the undertaking given before this Court on 01.06.2018, the petitioner has deposited Rs.5 lakhs and has submitted a proposal for regularising his loan account or for settlement under OTS scheme.
Without expressing any opinion on the merits of the case, the writ petition is disposed of with a direction to respondent No.2-bank to decide the proposal given by the petitioner within four weeks from today. The interim protection granted on 01.06.2018 regarding status quo of physical possession of the secured assets shall continue till the bank takes decision on the proposal submitted by the petitioner.