P.JYOTHIMANI, J. - (1.) HEARD the learned Senior Counsel appearing for the petitioner and Mr.A.V.Arun, learned counsel appearing for the respondent bank.
(2.) THE writ petition challenges the order of the bank dated 20.04.2012, in and by which the bank has considered the representation made by the petitioner for the purpose of approving the OTS proposal. By the said letter, the bank while accepting the OTS at Rs.7.43 Crores besides recovery expenses has directed the petitioner that the acceptance of the said OTS is subject to the following conditions;- i)payment of 25% of the settlement amount on receipt of approval letter ii)the balance settlement amount along with recovery expenses should be paid within 30 days from the approval of the OTS proposal and iii) the bank will release all the securities after settling the entire dues. The above-said settlement is challenged by the petitioner on the ground that once OTS proposal is accepted by the bank as per the policy of settlement, the bank has to give the maximum period upto 12 months. As submitted by the learned Senior counsel appearing for the petitioner, Clause 4 of the Recovery Policy - 2010 justifies the said stand, which reads as follows;- "PAYMENT OF SETTLEMTN AMOUNT: As far as possible, settlement amounts should be recovered in lumpsum. Where the borrowers desire to pay the settlement amounts in installments, a maximum time period of 12 months from the date of approval, be allowed. Payment of settlement amount in installments will attract interest at BPLR (simple). Where ever installment payments are sought, there should be a minimum of 25% down payment of the settlement amount. The learned Senior Counsel further submitted that the bank is entitled to persuade the borrower to dispose of the properties which are given as securities either by mortgage or otherwise so as to liquidate the obligation of repayment. That is also available in the Recovery Policy - 2010 under clause number 14.1, which is as follows:- RELEASE OF SECURITY: 14.1 There may be cases, where bank is able to persuade Borrowers/guarantors to dispose of the properties mortgaged to Bank to reduce their liability. There may also be request from Borrowers/guarantors for release of mortgaged properties against payment of fair present realizable value of such properties. The acceptance of the proposal without considering any sacrifice at that point of time would be in the interest of the Bank as well as the Borrower to reduce further interest burden on the amount so recovered.
(3.) THE policy also shows the method of recovery by permitting the mortgagor to sell the properties secured for the purpose of repayment and that is based on the agreement in respect of collateral settlement so as to earn income for the interest of the general public. In the letter of the respondent bank dated 10.03.2012 the bank informed the proposal of OTS as requested by the petitioner and consequently as stated above the amount of OTS culminated to Rs.7.43 Crores. The learned Senior Counsel appearing for the petitioner would submit that while the petitioner is willing to pay the enter amount, as per the policy of the bank, one or two properties given as securities can be realized for the purpose of enabling the petitioner to sell and forward the sale consideration in respect of the amount due to the bank, which is acceptable as per the policy enunciated above. In spite of it, by the impugned letter the bank has directed the petitioner to pay 25% of the settlement amount at the first instance immediately and the balance amount within 30 days.;