The Court permits debtors to approach banks for settlement under One Time Settlement schemes, suspending recovery proceedings during consideration of proposals.

JUDGMENT

Petitioner has approached this Court challenging the proceedings initiated by the 1^st respondent bank to recover amounts due under a loan availed by the petitioner from the 1^st respondent bank.

2. Learned counsel appearing for the respondent bank submits that the petitioner was highly irregular in repayment of the loan liability. It is submitted that the amounts payable by the petitioner is approximately Rs.48 lakhs. It is submitted that, the petitioner has complied with the condition imposed in the interim order dated 11.12.2025 and has remitted a sum of Rs.5,00,000/- towards the loan liability. It is submitted that presently there is a One Time Settlement Scheme in force (നവ കേ(cid:4)രളീയം കുടിശ്ശി(cid:4) നിവാരണ പദ്ധതി 2025-26) and the petitioner may be directed to approach the bank for settlement in terms of the said Scheme.

3. Learned counsel appearing for the petitioner has no objection in the writ petition being disposed of permitting the petitioner to approach the bank for One Time settlement. 4. Having heard the learned counsel appearing for the petitioner and the learned counsel appearing for the respondent bank, the writ petition will stand disposed of directing that, if the petitioner were to submit a proposal for settlement under the 'നവ കേ(cid:4)രളീയം കുടിശ്ശി(cid:4) നിവാരണ പദ്ധതി 2025-26’ before the Competent Authority of the respondent bank within a period of two weeks from today, the said application shall be considered by the Competent Authority and the decision of the Competent Authority on the application to be submitted by the petitioner shall be communicated to the petitioner. Till such time as a decision is taken on the application to be submitted by the petitioner, as directed above, further recovery proceedings against the petitioner shall remain suspended. If One Time Settlement is granted to the petitioner, petitioner will be governed by the terms of the One Time Settlement scheme and the petitioner shall duly and faithfully comply with the terms of One Time Settlement.