SUJIT NARAYAN PRASAD,J - (1.) This writ petition is under Article 226 of the Constitution of India, by which, the bearing Reference No. HDFC/DFSO/ASL/REJ/2018-19/05 dated 11.03.2019 (Annexure-8), whereby and whereunder, the One Time Settlement entered into in between the petitioner and Respondent Bank, has been cancelled.
(2.) The brief facts of the case of the petitioner is that the petitioner has extended with the credit facilities of an amount of Rs. 80 Lakhs, a cash credit of Rs. 70 Lakhs and a bank guarantee facility of Rs. 10 Lakhs. The said account having been declared to be non-performing asset, therefore, a proceeding has been initiated by issuing notice on 28.03.2018 under Section 13 (2) of the Securitisation and Reconstruction of the Financial Assets and Enforcement of Security Interest Act, 2002 (for short SARFAESI Act), subsequent thereto, a notice under Section 13 (4) of the SARFAESI Act, has also been issued.
(3.) In course of that stage the respondent-Bank has entered into a settlement under One Time Settlement Scheme by settling the account as would appear from Annexure-7 which contains the schedule of payment as referred hereunder as: In case of a "default" by the respective Borrowers and Guarantors; (i) the entire outstanding amount as mentioned in Point 2 above, along with further interest (less any installment already paid) shall forthwith become due and payable for which respective Borrower and Guarantors hereby irrevocably agree, declare, confirm and acknowledge; (ii) all the concession/waivers agreed to be granted shall stand withdrawn immediately without any further notice, reference and/or recourse, and Borrower and Guarantors shall become liable to pay the entire balance dues along with interest. Thus, in such circumstances, this terms of Settlement shall stand revoked automatically and the Bank shall be entitled to proceed to recover its entire balance claim forthwith, without any further reference and/or recourse notwithstanding what is provided herein. (iii) In addition to the above, the Bank shall also be entitled to proceed against you legally, both civil as well as criminal, entirely at your own risks, costs and consequences thereof. Further, the Bank shall take necessary steps to classify your name as willful defaulter as per the guidelines of RBI and shall notify CIBIL about the same, which you may please note. ;