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sanjaj patil (prop)     07 December 2014

Rbi one time settelment

my client applied  for  OTS  (rbi circular) to bank . last date for application was 28 feb 2014 . he submitted application on 14 feb 2014 and asked bank to give doubtful amount  and date on which account became doubtful but   and he is ready to pay amount in 11 installments which is  stated in RBI CIRCULAR.But   bank said pay 5,25,000 till 31 march 2014 from their letter dated 10 march 2014. the amount rs 525000/- is also not regarding to RBI's NPA norms . amount comed according to our CA  is 4.55.000/-.  matter is in co operative court . court saying that  one time settelment  is not dispute before court and you apporach to bank .  now bank saying that  31 march is over and your ots scheme is cancelled . i have no other remedy  instead of  court .

 can i put application before this court that bank has not followed rbi guidline . if court rejects this application can i get justice in upper court like high court.

 2 Replies

Isaac Gabriel (Advocate)     09 December 2014

It is the discretion of the bank and you cannot dictate terms to the bank.Wait.Another chance may caome when you can act swiftly and find settlement.

c.p.s. ramachary (1500)     10 December 2014

RBI OTS has statutory flavour and hence the proposal (if it is in tune with the policy) should be considered. RBI OTS is non discretionary and non discriminatory. Hence it cannot be rejected. RBI OTS has statutory flavour and hence binding on banks.Sardar Prem Singh Vs. Bank Of Baroda & Ors. : III (2004) BC 455 (DB All.);Sardar Associates Vs. Punjab & Sindh  Bank: 2009 (8) SCC 257;Central Bank Of India Vs. Ravindra 2002 (2) CTC 354 (SC).You may pursue the court/tribunal for necessary orders.

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