Case Law Details
Pawan Agrawal Vs Small Industries Development Bank of India (SIDBI) (Madhya Pradesh High Court)
Madhya Pradesh High Court Held that respondent-bank (SIDBI) cannot withdraw from the offer of One-time Settlement which is already accepted by the petitioner/ borrower.
Facts-
The respondent-Bank had sanctioned credit facilities to M/s. Madhya Bharat Phosphate Private Limited and the petitioner being the Director of the said Company stood as guarantor for the Company and mortgaged his immovable property. Later, loan account of the company became NPA and CIRP was initiated before NCLT. Based on NCLT order, the respondent-Bank obtained a sum of Rs.3,28,91,948/- in lieu of agreed loan facility. Accordingly, the respondent-Bank issued NOC in favour of the Company.
The petitioner accepted the offered One Time Settlement (OTS) amount by the respondent-Bank to pay Rs. 75,21,690.80/-. However, astoundingly, the respondent-Bank withdrew its offer.
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