This intra court appeal is filed by the respondents

in W.P.No.15853/2019 challenging the order dated

06.01.2022 passed by the learned Single Judge of this

Court.

2. Heard the learned Counsel appearing for the

appellants, respondent no.1 - party in person and also

perused the material available on record.

3. Brief facts of the case leading to the filing of this

appeal are, the respondent-couple had borrowed an

amount of Rs.55.10 lakhs from the appellant-Bank under

3

their Housing Loan Scheme in the month of November

2007 and the loan account of the respondents was

subsequently treated as Non-Performing Asset (NPA) by

the Bank. In the meanwhile, the respondents had lodged

various complaints alleging that the monthly installment

was wrongly fixed by the Bank and they also had lodged

criminal complaint against the officials of the Bank.

4. When the matter stood thus, the respondents

had approached the Central Minister of cabinet rank and

sought his interference for one time settlement of the

loan dues. The representation given by the respondents

was forwarded by the said Central Minister to the Bank

and in reply to the same, a letter dated 12.12.2018 was

addressed to the Central Minister by the Bank, which

reads as under:

"Respected Sir,

Housing Loan: REPRESENTATION GIVEN

BY

MR. SYED MOINUDDIN:

We

refer

to

your

letter

no.MOSPI/BO/1141/2018

dt.

27.10.2018,

enclosing the representation received by you

from Mr. Syed Moinuddin, regarding one time

4

settlement

of

his

housing

loan

a/c

no.30231778847.

2. The housing loan was sanctioned on

21.8.2017 for Rs.60,53,000 with EMI of

Rs.62,748/-, for purchase of ready built flat.

The sanction included SBI Life Cover of

Rs.5,12,158/-, which was not availed by Mr.

Syed Moinuddin. Hence, EMI was refixed as

Rs.58,784/- for the actual loan availed, viz.,

Rs.55,10,10,000/-. This was conveyed to him

vide our letters dt. 3.6.2015, 14.12.2016 &

10.1.2017. EMI started from October 2007.

Accordingly,

75

EMIs

amounting

to

Rs.43,22,424/- were due as on 10.01.2014.

But

the

amount

remitted

by

him

is

Rs.41,07,588/-.

This

resulted

in

an

irregularity of Rs.2,14,836/-, which is more

than 3 EMIs due and the account slipped to

NPA.

Based

on

the

discussions

with

the

customer, we reached a One Time Settlement

(OTS) offer of Rs.22.10 lakhs. The offer

involves maximum sacrifice which can be

afforded by the bank customer's request to

bring down the compromise amount to

Rs.16.00 lakhs cannot be afforded as the

extant guidelines do not permit the bank. The

5

customer is delaying repayment by resorting

to

correspondence/complaint

to

various

forums and authorities even after providing

him all the details and clarifications sought.

4. The Customer may please be advised to

contact

our

AGM,

Asset

Recovery

Management Branch, K.G.Road, Bangalore,

for settlement of dues. Bank is always ready

to settle the dues within RBI/Banking Norms.

Yours faithfully,

DEPUTY GENERAL MANAGER & CCO."

5. On the ground, that, inspite of such a letter

issued by the bank authorities, no action was taken to

accept the one time settlement as assured by the bank,

the respondents herein had approached this Court in

W.P.No.15853/2019 with a prayer to issue necessary

directions to the appellant-Bank to close the loan account

after receiving the amount of Rs.22.10 lakhs from the

respondents and also to issue necessary directions to

fulfill the written commitment made by the Bank in their

letter dated 12.12.2018 without any further delay and to

return the original documents of the property of the

6

respondents along with no due Certificate and update the

cibil reports of the respondents. The said writ petition

was contested by the appellant-Bank by filing a detailed

statement of objections.

6. The learned Single Judge of this Court vide the

order impugned dated 06.01.2022 has allowed the said

writ petition and a writ of mandamus is issued to the

appellant-Bank to close the loan account of the

respondents by accepting Rs.22.10 lakhs being the OTS

value and