High Court of Karnataka dismissed a writ petition challenging a bank's rejection of an One Time Settlement (OTS) proposal and NPA classification. The court held the petition was devoid of merits under the prevailing apex court ratio.
Petition dismissed with no costs.
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IN THE HIGH COURT OF KARNATAKA, BENGALURU
DATED THIS THE 9TH DAY OF SEPTEMBER, 2022
BEFORE
THE HON'BLE MR. JUSTICE KRISHNA S.DIXIT
WRIT PETITION NO.25696 OF 2018(GM-RES)
BETWEEN:
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… PETITIONERS
(BY SRI.AMAN N L, ADVOCATE FOR SRI. SARAVANA S, ADVOCATE)
AND:
1. DENA BANK,
RECOVERY MANAGEMENT DEPARTMENT, DENA CORPORATE CENTRE, PLOT NO. C-10, G BLOCK, BANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI-400 051.
2. DENA BANK
ZONAL OFFICE, ARM BRANCH, RT NAGAR, NEAR CBI OFFICE, BANGALORE-560 032. REP BY ITS MANAGER.
… RESPONDENTS (BY SRI. T P MUTHANNA, ADVOCATE FOR R1 & R3; R3 SERVED AND UNREPRESENTED)
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO DECLARE THE INITIATION OF PROCEEDINGS BY THE BANK IN TERMS OF ANNEXURES-G DATED 20.02.2018 AND ANNEXURE-J, DATED 31.05.2018, ISSUED BY THE 1ST RESPONDENT, FOR THE PURPOSE OF DECLARING THE PETITIONERS AS WELFUL DEFAULTERS AS ARBITRARY AND VIOLATIVE OF ARTICLE 14 OF THE CONSTITUTION OF INDIA; AND ETC.,
THIS PETITION COMING ON FOR PRELIMINARY HEARING IN B GROUP THIS DAY, THE COURT MADE THE FOLLOWING:-
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ORDER
The essential grievance of the petitioners is against the denial of its One Time Settlement proposal on the ground that the borrower is a willful defaulter and the loan granted has been termed as NPA after giving multiple opportunity for repayment which they did not avail.
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having perused the petition papers, this Court is broadly in agreement with the submission made on behalf of the respondent-bank.
In the above circumstances, this writ petition being devoid
of merits is liable to be dismissed and accordingly it is.
Now no costs.
Sd/JUDGE
Snb/
3 issues framed by the court
Whether writ jurisdiction can be invoked against a bank's rejection of One Time Settlement (OTS) proposal and classification as willful defaulter.
Whether the current apex court ratio in Phoenix Arc precludes review of the bank's decision regarding NPA classification.
Whether the petition is maintainable considering the matter is pending before NCLT.
Colour shows how this judgement treated each authority
Phoenix Arc Private Limited vs. Vishwa Bharti Vidya Mandir & Ors.Relied on¶28
(2022) 5 SCC 345 · Who else cites this
1 provisions across 1 enactments
M/S Kaveri Telecom Infrastructure Ltd. & Anr.
Dena Bank & Anr.
Krishna S. Dixit
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
