# In the matter of Ambience Private Limited & Anr. vs. Punjab and Sind Bank & Ors.

> HC judgment dated 2024-07-03. Citation: TCN-2024-HC-00062. The case revolves around the withdrawal of a One Time Settlement (OTS) scheme by Punjab and Sind…

- **Court:** HC
- **Order date:** 3 Jul 2024
- **Citation:** TCN-2024-HC-00062
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/ambience-private-limited-anr-vs-punjab-and-sind-bank-ors-57bc7ca1

## Summary

### Background

The case revolves around the withdrawal of a One Time Settlement (OTS) scheme by Punjab and Sind Bank ('respondent-bank') for Ambience Private Limited ('petitioner-company'). The petitioner-company had availed term loans and other credit facilities from the respondent-bank and other lenders, including Punjab National Bank (PNB) and HDFC Limited, for a real estate project in Noida. Due to financial difficulties, the petitioner-company entered into an OTS scheme with the respondent-bank. Subsequently, the petitioner-company fully repaid its loan to PNB, the lead bank in a consortium of lenders, without availing any OTS from PNB. The respondent-bank, alleging misrepresentation and non-compliance with the terms of the OTS, withdrew the OTS extension despite the

…

## Facts

Ambience Private Limited (petitioner) obtained term loans from Punjab and Sind Bank (respondent) and other lenders (HDFC Limited and Punjab National Bank (PNB)) for a real estate project in Noida. The loans were under a Multiple Banking Arrangement. The petitioner failed to adhere to repayment commitments, leading to the loan accounts being classified as Non-Performing Assets (NPA) in March 2019. The petitioner underwent Corporate Insolvency Resolution Process (CIRP) from 2020-2022, which was later set aside by NCLAT. The petitioner approached the respondent-bank for settling accounts, and an OTS for ₹122 Crores was approved for the Panipat Project, which was paid and adjusted by October 2022. For the Noida Project, the petitioner proposed an OTS, initially for ₹111.21

…

## Issues and analysis

### Issue 1: Whether the respondent-bank was justified in withdrawing the One Time Settlement (OTS) scheme after …

**Ratio:** A nationalized bank, being an instrumentality of the State, cannot act arbitrarily or

…

**Reasoning:** The court reasoned that the respondent-bank, as a nationalized bank, is subject to

…

**Interpretation:** The court interpreted the legal principles governing OTS agreements,

…

**Application:** The court applied the ratio to the facts of the case, finding that the

…

## Parties

- **Judges:** MINI PUSH…
- **Respondents:** AMBIENCE PRIVATE…; Punjab & Si…
- **Other parties:** Kohi…

## Timeline

- **2013-03-14 — Multiple Banking…**: Loans sanctioned to the petitioner-company under Multiple Banking Arrangement for a real…
- **2019-03-31 — Loan Accounts…**: The petitioner-company's loan accounts were classified as Non-Performing Assets (NPA) by…

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/high-courts-new-delhi/ambience-private-limited-anr-vs-punjab-and-sind-bank-ors-57bc7ca1