2019 (2) TMI 1951 - HC - Insolvency and Bankruptcy

Cancellation of the OTS Scheme extended to the Petitioner Company - it is stated that petitioner is ready and willing to settle his loan amount and in this regard the petitioner be granted liberty to submit a representation under the One Time Settlement scheme or for rescheduling of the loan amount within a period of two weeks - HELD THAT - The petition is disposed of. In case, the petitioner submits a representation either for One Time Settlement or for rescheduling of the loan amount, the same shall be dealt with by the respondent - Competent Authority in accordance with law by a speaking order within a period of two weeks from today. It is made clear that this Court has not expressed any opinion on the merits of the case.

Summary

Issues:
1. Petition to quash cancellation of OTS Scheme.
2. Petition to quash waiver of 50% penal interest and set a payment schedule.
3. Petition to direct waiver of 100% penal interest and grant more time for payment.
4. Any other order in the interests of justice and equity.

Analysis:
1. The petitioner sought a writ of certiorari to quash the cancellation of the OTS Scheme extended to them. The petitioner also requested a writ to quash a letter that waived only 50% of penal interest and set a three-month payment schedule. Additionally, the petitioner asked for a mandamus to direct the respondent to waive 100% of the penal interest and provide more time for payment. The court admitted the petition for hearing and heard it finally with the consent of both parties.

2. During the hearing, the petitioner's senior counsel informed the court that they had deposited a sum of ?4 crores in compliance with an interim order. The petitioner expressed readiness to settle the loan amount and requested permission to submit a representation under the 'One Time Settlement' scheme or for rescheduling the loan within two weeks. The respondent's counsel stated that any such representation would be handled in accordance with the law.

3. Considering the submissions made by both parties, the court disposed of the petition. If the petitioner submits a representation for 'One Time Settlement' or loan rescheduling, the Competent Authority is directed to process it within two weeks by issuing a speaking order in accordance with the law. The court clarified that it had not expressed any opinion on the merits of the case. Consequently, certain interim applications were also disposed of as they were no longer relevant after the main petition was resolved.