Tijaria Polypipes Limited Vs Union of India (Rajasthan High Court)
The Rajasthan High Court has intervened in a dispute between Tijaria Polypipes Limited and the Bank of India, staying a recent directive for the company to deposit an additional ₹7 crores for its One Time Settlement (OTS) proposal. The Court has, however, ordered the Bank of India to strictly adhere to the Reserve Bank of India’s (RBI) circular dated June 8, 2023, concerning OTS proposals.
Tijaria Polypipes Limited, whose bank account has been declared a Non-Performing Asset (NPA), claims it has already deposited a total of ₹12 crores in two tranches (₹7 crores on August 31, 2024, and ₹5 crores on December 3, 2024) under previous directions from a Single Judge of the High Court. Despite these deposits, the company alleges that the Bank of India has repeatedly rejected its OTS proposal without complying with the Court’s orders or the RBI circular. This non-compliance has led to ongoing litigation, including proceedings before the National Company Law Tribunal (NCLT).
A recent order from a Coordinate Bench on May 5, 2025, had mandated a further deposit of ₹7 crores. Tijaria Polypipes argued that requiring additional deposits while the Bank allegedly violates RBI guidelines and court directives is unjust, especially for a company seeking OTS due to financial distress.
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