Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Constitution of India One Time Settlement (OTS) Scheme |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Constitution of India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Constitution of India: Art. 226 – Power under – Exercise of – Grant of benefit under the One Time Settlement (OTS) Scheme – On facts, writ petitioner obtained credit facility from the financial institution/Bank and the said loan amount was declared as Non- Performing Asset (NPA) – Writ petition seeking issuance of writ of mandamus directing the Bank to positively grant of benefit under the OTS Scheme to the writ petitioner-borrower – Allowed by the High Court – Sustainability of – Held: Not sustainable – Grant of benefit under the OTS is always subject to the eligibility criteria mentioned under the OTS Scheme and the guidelines issued from time to time – If the bank/financial institution is of the opinion that the loanee has the capacity to make the payment and/or that the bank/financial institution is able to recover the entire loan amount even by auctioning the mortgaged property/secured property, either from the loanee and/or guarantor, the bank would be justified in refusing to grant the benefit under the OTS Scheme – Such a decision should be left in the interest of the bank and in its commercial wisdom – Thus, the High Court erred and exceeded in its jurisdiction in issuing writ of mandamus directing the Bank to positively grant the benefit of OTS to the petitioner – Order passed by the High Court is quashed and set aside. |
Judge | Hon'ble Mr. Justice M.R. Shah |
Neutral Citation | 2021 INSC 899 |
Petitioner | The Bijnor Urban Cooperative Bank Limited, Bijnor & Others |
Respondent | Meenal Agarwal & Others |
SCR | [2021] 9 S.C.R. 416 |
Judgement Date | 2021-12-15 |
Case Number | 7411 |
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