JUDGMENT
Aftab Alam, J.
Page 1174
1. Heard Mr. Y.V. Giri, Senior Advocate appearing for the petitioner and Mr. Jitendra Singh counsel representing the Bihar State Credit & Investment Corporation Limited (BICICO for short).
2. The petitioner is a borrower from the BICICO. As a result of default in repayment of the loan amount, the dues against it accumulated with the accrued of interest. In those circumstances, the petitioner made ah application for settlement of its dues under the One-Time Settlement scheme (OTS). The BICICO gave its sanction for the settlement of the loan under OTS vide letter, dated 7.12.2004 (Annexure 4) spelling out the terms & conditions and the instalments for payment of a total sum of Rs. 41,18,000/- plus the amount of surcharge. The petitioner gave to the BICICO post-dated cheques/demand drafts amounting to a total sum of Rs. 42,94,180/-. Out of those cheques/bank drafts, only a cheque of Rs. two lakhs Page 1175 was encashed and the remaining got dishonoured. The BICICO then withdrew the OTS facility allowed to the petitioner and intimated him in that regard vide letter dated 16.08.2005, a copy of which is at Annexure-6.
3. In this petition, an attempt is made to explain the constraints and circumstances that were completely beyond the petitioner’s control and due to which it was unable to manage the necessary funds and as a result, the post-dated cheques given to the BICICO got dishonoured. It is, however, stated that by the intervention of this Court, the petitioner has got refund of a large amount paid by it to the BCCL as sales tax and now it is in a position to pay the amount under OTS to the BICICO along with the penal interest and other charges, if any, leviable under the scheme.
4. In a supplementary affidavit filed on its behalf, the petitioner has brought on record as Annexure-11, a letter dated 13.02.2006 addressed to the Managing Director making the request and offering to make the payment of the balance dues (under OTS ) in twelve monthly instalments.
5. Mr. Jitendra Singh, Counsel for the BICICO submitted that the scheme came to an end in December, 2005 and hence, it is no longer possible for the BICICO to accept the petitioner’s offer and to revive the OTS facility granted to him earlier.
6. At least cases of two other borrowers in similar situation came before this Court and this Court noted that it would be in the interest of the lending organisation itself to accept the payments made by the borrowers even after the expiry of the stipulated dates because getting back the money in fact would in any event be better than a large sum simply entered in the ledgers, the recovery of which would remain at best doubtful. On those considerations, this Court in the case of M/s Sushila Chemical Private Limited (C.W.J.C. No. 13295 of 2002) and M/s Chandawat Udyog (Cylinders) Limited (C.W.J.C. No. 104 of 2006 directed the parties to settle the accounts on the basis of the amounts calculated under OTS of course with levy of interest and other permissible charges.
7. Mr. Giri is willing to pay a sum of Rs. five lakhs through five bank drafts and hands over the demand drafts to Mr. Jitendra Singh. So far as the petitioner’s offer to clear the balance dues in twelve monthly instalments is concerned, I think the number of instalments prayed for is unreasonably large. The balance dues must be cleared off by the petitioner in no more than six monthly instalments.
8. Accordingly, this writ petition is disposed of in the same terms as the case of M/s Sushila Chemical Private Limited by making the following operative order.
9. Accepting the undertaking given on behalf of the petitioner it is directed that the petitioner must liquidate the balance dues, along with interest on the unpaid amounts, in six equal monthly instalments. The payment of first instalment shall fall due on 15.5.2006 and the following instalments on the 15th day of the next succeeding month till the entire dues are’ liquidated by 15.10.2006. The last instalment will include, apart from the balance of the outstanding dues, the interest on the amounts remaining unpaid from 15.01.2005. It is made clear that the BICICO shall charge the same rate of interest in this case as was charged in the case of M/s Sushila Chemical Private Limited.
10. Once the entire dues are liquidated, the Corporation shall return to the petitioner the documents submitted as security for the repayment of the loan without any delay.
Page 1176
11. It is made clear that this direction is being made on the undertaking given to this Court on behalf of the petitioner. It is further understood that the deponent of this writ petition is fully conscious that any breach of the undertaking given to the court, i.e. any failure to make payment of the instalments on the dates as indicated above will amount to a contempt of this Court and shall invite the consequential penalty, apart from any action that the Corporation might take against him and/or the company.
12. It is also made clear that no prayer will be entertained for any further extension of the payment schedule.
13. In view of the directions made above, the BICICO is directed to unseal the unit of the petitioner company and to allow the petitioner to operate the unit uninterruptedly. The Certificate proceeding initiated for the recovery of the amount shall remain in abeyance and shall stand abated on payment of the last and the final instalment.