Omkaram Venkata Ramana Vs Union of India (Andhra Pradesh High Court)
The Andhra Pradesh High Court dealt with a writ petition seeking multiple reliefs against a bank, including declaration of classification of accounts as Non-Performing Assets (NPA) as illegal, restoration of properties, compensation, and action against bank officials.
The petitioner, a director of companies maintaining banking relations since 1993, had availed various credit facilities. For expansion, further facilities were sanctioned between 2013–2014. Machinery suppliers were selected based on the bank’s recommendation, but defective and second-hand machinery was allegedly supplied, affecting business operations. Despite partial compliance with repayment obligations and re-schedulement of dues, the bank declared the accounts as NPA and initiated proceedings under the SARFAESI Act. Allegations were also made regarding mishandling of title deeds and wrongful registration.
Earlier writ proceedings resulted in interim protection subject to payment of interest. The petitioner alleged non-cooperation by the bank, wrongful rejection of One Time Settlement (OTS) proposals, and improper appropriation of deposited amounts. Multiple OTS proposals were discussed, revised, and partly acted upon. The petitioner also initiated criminal proceedings relating to alleged fraud in machinery supply, but such proceedings were later quashed as contractual disputes. Insolvency proceedings were initiated before the NCLT, and parallel actions were taken before the Debt Recovery Tribunal, resulting in decrees.
