Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Bank/Banking: One Time Settlement Scheme (OTS) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Bank/Banking: One Time Settlement Scheme (OTS) – No borrower can, as a matter of right pray for a grant for the benefit of one time settlement scheme – No writ of mandamus can be issued by the High Court in exercise of Art. 226 of the Constitution of India, directing the financial institution/bank to positively grant a benefit of OTS to a borrower – The grant of benefit of OTS Scheme is subject to the eligibility criteria and the guidelines issued from time to time – In the instant case, State Bank of India sanctioned a cash credit in favour of the borrower which was classified as NPA in 2015 – Bank came out with OTS scheme which provided for making payment as settled, within 6 months – Bank sent OTS offer to the borrower which was accepted by him and certain amount was paid from time to time – However, when borrower asked for extension of time for the remaining amount, the bank refused – Borrower filed writ petition u/Art. 226 of Constitution of India before High Court seeking extension of time for outstanding amount, which was granted by High Court – On appeal, held: It is an admitted position that the borrower did not make the payment due and payable under the sanctioned OTS Scheme on or before the date mentioned in the sanctioned letter – Even during the pendency of writ petition, three different OTS schemes were floated by bank and offered to borrower which were refused by him – Rescheduling the payment under OTS scheme can be done only by mutual consent of borrower and bank u/s. 62 of Contract Act – Order of High Court is unsustainable. |
Judge | Hon'ble Mr. Justice M.R. Shah |
Neutral Citation | 2022 INSC 1168 |
Petitioner | State Bank Of India |
Respondent | Arvindra Electronics Pvt. Ltd. |
SCR | [2022] 13 S.C.R. 1073 |
Judgement Date | 2022-11-04 |
Case Number | 6954 |
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