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2020 (12) TMI 749 - HC - Indian LawsRevocation of in-principle agreement for one-time settlement - whether the said RBI circulars and the RBI policy guidelines for COVID-19 would apply to the Petitioners and whether the Petitioner, can in law, pray that the revocation of the OTS proposal be quashed and IL&FS be directed to abide by the OTS proposal? HELD THAT:- Despite the Petitioners having sought three months’ time in the writ petition for finalizing the OTS proposal and raising of ₹ 100 crores, even the grants of six months’ time has proved to be insufficient. The present case does not relate to postponement of payment of instalments of loans or where any accounts would be classified as NPAs, for defaults made during the COVID-19 pandemic. While there is no doubt that the pandemic did cause disruption to normal business operations and genuine borrowers ought to be given the benefit of the RBI circulars and policy guidelines, the Petitioners do not fall in that category. The defaults by the Petitioners date back to 2018. The defaults continued over a period of two years prior to the outbreak of the pandemic itself. Such cases cannot be those which would be entitled to benefits under the policies of the RBI which are meant to give some relief during the pandemic. Moreover, in the present case, despite repeated opportunities having been given by the Division Bench at the stage when the DRT proceedings were going on and even after the filing of the present writ petition, the same have been of no avail - Respondent is permitted to proceed against the Petitioners, in accordance with law - Petition dismissed.
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