OTS Scheme for Awarded to recover the loan as per award
RAJEDRA BABANRAO DHAGE
(Querist) 06 January 2014
This query is : Resolved
Dear All Hon.Members of Lawyersclubindia,
I am Recovery Manager in Co op Bank, I am very thankfull to receive your valuable opinion on the following matte. We are confused, Is it Ots schem be applicable when Hon court alleady decided and awarded to recover the overdue loan from borrower & we are started execution under 156 of MCS Act.The borrower has approched & given the proposal for settlement of the loan under OTS stating due to illness & loss in business, he did't pay his due loan.In that case, Can we accept the proposal.? Whether it would be lead, to contempt of the Hon Courts Judgment, illegal or conflicting with amongst the other borrowers?
Sincerely awaiting your valuable reply
Thanking yours,
Rajendra Dhage
Adv.Aiyer VLV
(Expert) 06 January 2014
Bank proceeded to recover dues. Now bank has right to recover., same way it had earlier,
You can always enter into settlement. Your right will be modified as per settlement.
Best prepare OTS and file for execution for modified amount.
ajay sethi
(Expert) 06 January 2014
once you accept OTS amount you wont be able to recover more than OTS amount . it would not amount to contempt of court
BAALASUBRAMANNYAMM
(Expert) 06 January 2014
The bank has introduced the OTS Scheme (One Time Settlement) only to quick and lump sum recovery from the long pending defaulters, after passing the court award in the present case. If the NPS subscriber, even after passing award, filed a petition for OTS Scheme, it is the discretion powers of the bank, about to entertain the application of subscriber or its rejection.In case, if the bank rejects the application of subscriber under OTS Schedule, then the bank has every right to execute the court award.
Guest
(Expert) 06 January 2014
Bank has the Right to take a decision irrespective of Court Orders in OTS if both the parties are agreeable and Court would not object.
Devajyoti Barman
(Expert) 06 January 2014
Yes, there is no hurdle of court of both ban and borrower agrees on a price.
Rajendra K Goyal
(Expert) 06 January 2014
Well advised by the experts. OTS Scheme guidelines generally specify which cases are covered in the scheme. If OTS scheme is mum on the matter Bank has got the discretion to decide on the matter.
Biswanath Roy
(Expert) 07 January 2014
Execution under 156 of MCS Act shall frustrate and not applicable if you refuse to accept one time settlement proposal of the borrower. Because MCS Act is applicable where the borrower is a defaulter in paying loan amount according to moratorium of the loan agreement. Upon your refusal of the proposal of the borrower for one time settlement of loan the borrower cannot be said as a defaulter for the payment of loan. OTS is not conflicting or an abuse of any order or principle laid dowm by the Court of Justice and does not lower down the prestige of the Court that attracts Law of Contempt.
