Case Law Details
Amrik Singh Vs DCB Bank Ltd. (Punjab and Haryana High Court)
Admittedly vide Annexure P-5 dt. 25.07.2020, the respondents had sanctioned an OTS for a total amount of `85 lakh to the petitioner as per the OTS Policy framed by them. Under the terms of the said sanction, petitioner was to pay `25 lakh by 31.07.2020, `20 lakh by 30.08.2020 and `40 lakh by 30.09.2020.
No doubt it contains a clause that in case of default in compliance with the above payment schedule, the settlement offer shall stand cancelled and the Bank reserves the right to re-debit petitioner’s account with all waivers and initiate legal action.
It is not in dispute that by 30.09.2020, petitioner had paid `45 lakh and the balance payable was Rs. 40 lakh.
On 30.09.2020, petitioner made a request for extension of the OTS by 90 days on account of the Covid-19 Pandemic, slowing down of economy, slow flow of funds in the market and also on the ground that the purchaser of the mortgaged property delayed payment of the said amount to him.
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