- (1.) Cash credit facility was granted by the Union Bank of India to M/s Bahudesshiya Audyogik Utpadan Sahkari Samiti Limited and M/s Janta Udyog Samit. The petitioner is a guarantor for M/s Bahudesshiya Audyogik Utpadan Sahkari Samiti Limited and was also the Secretary in Janta Udyog Samiti. The Accounts became irregular and were declared as non-performing assets (NPA). Approximately a sum of Rs.1.5 crores became due and payable by these two Samities. The respondent bank proceeded to recover the amount by filing two claim applications before the Debts Recovery Tribunal, which, after contest, was decreed by an order dated 19/20.8.2005 for recovery of approximate Rs.1.50 crores.
(2.) It transpires that parties entered into a One Time Settlement on 22.8.2006 pursuant to the guidelines issued by the Reserve Bank of India. The One Time Settlement was settled by the higher authorities of the bank for Rs.75 lacs, which was to be deposited within a week and the balance Rs.65 lacs was to be deposited by 20th September, 2006. Based on this One Time Settlement, the petitioner deposited Rs.7.5 lacs on 22.8.2006 and
(3.) Rs.2.5 lacs on 23.8.2006 and, consequently, the first part of the One Time Settlement was compiled by the petitioner. The balance amount of Rs.65 lacs was required to be paid on or before 20.9.2006.;