- (1.) The petitioner, who had offered to settle the loans outstanding to the Punjab Finance Corporation (PFC) under OTS Policy, later has resiled from the same, contending that the liability is of the PFC to pay to the petitioner inasmuch as he has already paid the amount in excess of what was liable to be paid. The writ petition came to be filed at a time when the petitioner did not make the payment as it was his undertaking in the OTS Scheme for payment of Rs.13,29,745/- and when the PFC withdrew the OTS concession, he has filed the petition stating that he was entitled to OTS and for finalization of the account as if it to suggest that his claim that money is due from the respondent should be accepted.
(2.) The respondent-PFC takes up a plea that there is a clear misunderstanding of the terms of the OTS and after undertaking to make the payment as per OTS, he cannot complain that any amount is due from the PFC to the petitioner. The withdrawal of the offer for settlement under OTS Scheme was, under the circumstances, perfectly justified.
(3.) To understand the controversy between the parties, it is necessary to reproduce the terms of the OTS Policy in so far as it is relevant for the petitioner's loan account, which was for an amount of about Rs.5 lacs: OTS amount: Outstanding principal, expenses plus interest as given below or principal plus expenses alongwith documented rate of interest from date of distursement till the cut off date less interest paid on reducing balance basis without adjustment against principal outstanding, whichever is lower. xxxx xxxx xxxx For loan above Rs.5 lacs: a) Gen. Loan cases Principal plus expenses plus 12% interest since beginning compounded half yearly. b) AAIFR/BIFR case Principal plus expenses plus 10% interst since beginning compounded half yearly. Loans where properties/assets acquired and sold by PFC. Outstanding principal plus 10% of interest outstanding as On the last date of sale. In no case the OTS amount will be less than the outstanding principal plus expenses. (underlining mine);