Query on ots issues with bank...
Yoges Patel
(Querist) 19 March 2015
This query is : Resolved
Dear Sir,
Its relating to a company we have been doing business since 2002, unfortunately the business turned down in the year 2013 due to market conditions and currency fluctuation and the account went NPA after lot of communications and clarifications our bank did approve OTS scheme of which it was agreed to pay the settled liability in 2 installment (i.e) 14.81% Upfront on 31/10/2014, 44% first installment by 25/12/2014 and 41.19% final installment (i.e) by 25/03/2015. we have cleared upfront payment and first installment, now going through liquidity pressures we are unable to arrange the final installment and hence requested in writing to bank for extension in time till 30-June-2015, for which we have received a letter stating that if we do not pay the final installment on time the amount paid till date will be adjusted against interest and total amount outstanding before OTS will be recovered by moving ahead in court. we are confident to close the liability by 30-June-2015. Please advice our stand and consequences. What can be done and how.
Regards,
Yogesh.
T. Kalaiselvan, Advocate
(Expert) 20 March 2015
Though the bankers have very strictly informed you about the deadline issue, you may approach by escalating the matter with the higher office of the bank with an application to extend the time by properly explaining the circumstances that have led you to approach their good offices and seek their intervention for the desired relief. Your application should be drafted meticulously with genuine reasons so that the authorities are convinced about your genuineness and reasons for inability to comply the settlement within the stipulated time limit.
RAJU O.F.,
(Expert) 29 March 2015
No body can compel the bank to extend time under OTS. You better plead before higher officials of the bank and request to have mercy and convince them that the dues would be settled without any more extensions.
