A debtor allowed to clear liabilities through a One Time Settlement while ensuring compliance with court directions.

J U D G M E N T

The petitioner is common in both these writ petitions. He availed credit facilities from the Pappinivattam Service Co-operative Bank Limited. On default being committed the Bank initiated proceedings under Section 69 of the Kerala Co-operative Societies Act , 1969, and obtained an award determining the liability of the petitioner. On the award being put to execution, the petitioner has approached this Court.

2. WP(C)No.35627 of 2024 has been filed seeking a direction to the respondent bank to consider Ext.P7 request submitted by the petitioner and grant to the petitioner maximum concessions in the matter of the loan. WP(C)No.44048 of 2025 has been filed challenging the sale of the property of the petitioner.

3. When these matters are taken up for consideration today, the learned counsel appearing for the respondent bank submits that the outstanding amount as on 31.12.2025 is Rs.61,76,634/- (Rupees Sixty One lakh Seventy Six Thousand Six Hundred and Thirty Four only). It is submitted that, in the auction conducted by the bank for execution of the award obtained against the petitioner, the bank itself purchased the property. However, it is admitted that the sale has not been confirmed. It is submitted that the bank has no objection in granting to the petitioner some installments to clear the liability.

4. Faced with the situation, the learned counsel for the petitioner submits that, at present, there is a One Time Settlement (OTS) scheme facility, namely the "നവകേ(cid:4)രളീ(cid:7)യം(cid:9) (cid:4)(cid:10)ടി(cid:12)ശ്ശി(cid:12)(cid:4) ന(cid:12)വ(cid:14)രണ പദ്ധതി(cid:12) 2025-26", and the petitioner may be permitted to approach the bank with an application for grant of OTS.

Having heard the learned counsel appearing for the petitioner and the learned counsel appearing for the respondent bank, these writ petitions will stand disposed of in the following manner:

(i) The petitioner shall pay the outstanding amount of Rs.61,76,634/-

(Rupees Sixty One lakh Seventy Six Thousand Six Hundred and Thirty Four only) together with any accrued interest, cost and bank charges in fifteen(15) equated monthly installments;

(ii) The first installment shall be paid on or before 27.02.2026. The subsequent installments shall be paid on or before the last working day of the succeeding months;

(iii) In the event of default of any one installment, the respondent bank shall be entitled to proceed in accordance with the law;

(iv) In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance.

The disposal of these writ petitions will not prevent the petitioner from approaching the bank for OTS. If OTS is granted, the petitioner will be governed by the terms of OTS and not by the directions issued by this Court. If the petitioner is granted OTS, the petitioner shall duly and faithfully comply with the terms of OTS. If the petitioner fails to comply with the terms of OTS, it will be open to the respondent bank to continue with the proceedings initiated against the petitioner.

Sd/-

GOPINATH P., JUDGE