The judgment centers on the enforcement of loan agreements and the application of the SARFAESI Act in case of defaults, emphasizing the validity of One-Time Settlement proposals.

JUDGMENT

(Dated this the 2^nd day of February, 2026)

The petitioner had obtained a Housing loan from the respondent bank and upon default in repayment, the respondent bank initiated proceedings under the SARFAESI Act , 2002. At that time, the petitioner approached this Court by filing W.P.(C) No 46868 of 2024, and the said writ petition was disposed of by directing the respondent Bank to accept repayment of the entire overdue amount after adjusting Rs.10 lakhs, which was deposited in the Saving Bank account of the petitioner, along with any accrued interest, costs and charges from the petitioner and to pay the balance of the overdue amount, after adjusting the above-mentioned deposit in the Saving Bank account, along with any accrued interest, costs and charges, in 15 equal monthly instalments. The petitioner, however, could not remit the amount as ordered. Thereafter, the petitioner requested the Bank for an One-Time Settlement (OTS) scheme through Ext.P1. In the meantime, the Advocate Commissioner issued a notice to take physical possession of the secured asset.

2. On 06.10.2025, an interim order was passed by this Court deferring the coercive steps against the petitioner on condition that the petitioner remits Rs.10 lakhs within one month.

3. The learned counsel for the respondent, on instructions, submits that the petitioner’s request for OTS proposal was considered by the bank and which was allowed, and directed the petitioner to remit Rs.56,90,811/- (Rupees fifty six lakhs ninety thousand eight hundred and eleven only).

In view of the above settlement allowed by the bank as OTS, this writ petition stands closed.

SD/-