The case of the petitioner is that M/s. Jay Balaji Industrial Alloy had taken a loan to
the tune of Rs.2 crores from the opposite party-Bank. The petitioner- Company was the guarant
or of the said loan. Since the borrower was unable to pay the loan amount, proceedings under t
he Securitization and Reconstruction of financial Assets and enforcement of Security Interest
Act, 2002 were initiated against the borrower as well as guarantor-petitioner. Notice under Se
ction 13(2) of the Act,2002 was issued showing an outstanding over Rs.2.11 crores as on 07.12.
2013. By notice dated 27.02.2016 it was notified that e-auction for the mortgaged property wa
s fixed to 29.03.2016. It has been stated in the affidavit filed today that the auction of the
mortgaged property has not been taken place on 29.3.2016.
Mr. A.A. Das, learned counsel for the petitioner states that the petitioner-guarantor o
f the loan is agreeable to settle the account for which an offer of One Time Settlement was ma
de by the petitioner on 11.04.2016 for an amount of Rs.1.5 crores towards full and final settl
ement of the account. The opposite party-Bank has rejected the offer after considering the out
standing dues and the value of the mortgaged property. However, the Bank in the communication
dated 21.04.2016 also advised the petitioner to improve the compromise offer after looking to
the value of security and outstanding dues. Learned counsel for the petitioner has now submitt
ed that as per Banks NPA Management Policy with regard to the terms of compromise settlement i
n Chapter-7 of the said Policy, the loan account can be settled in terms of paragraph-7.3.2 of
the said policy relating to payment terms.
Considering the aforesaid facts and circumstances, we dispose of the writ petition with
the direction that if the petitioner files any payment offer in response to the letter of the
opposite party-Bank dated 21.04.2016 within a period of fifteen days, the same shall be consi
dered by the opposite party-Bank in terms of NPA Management Policy, more particularly, paragra
ph-7.3.2 of the said policy relating to payment terms as expeditiously as possible, preferably
within a period of thirty days thereafter.
