JAI RENGA MILLS PRIVATE LIMITED Vs. AUTHORIZED OFFICER UNION BANK OF INDIA

JUDGEMENT

(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.

(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.