Court allows petitioner to apply for One Time Settlement despite prior default.

JUDGMENT The petitioner availed credit facilities from the respondent Bank. On default being committed, the Bank initiated Revenue Recovery proceedings to recover the amount due from the petitioner prompting the petitioner to approach this Court by filing the above writ petition and seeking the following reliefs:-

(i) to set aside the Exhibit P2 which is the notice issued by the respondent bank against the petitioner under Form No.24 dated 11.12.2025;

(ii) to issue writ of mandamus to the respondent bank for accepting the full and final settlement of the settled amount in equal 15 installments;

(iii) to defer the coercive proceedings of the respondent against the property of the petitioner herein.

2. When this matter is taken up for consideration today, it is the submission of the learned counsel for the petitioner that the petitioner may be permitted to approach the Bank for One Time Settlement under the "നവകേ(cid:4)രളീയം കുടിശ്ശി(cid:4) നിവാരണ പദ്ധതി 2025-26”

(the Scheme).

3. The learned counsel appearing for the respondent Bank submits that the petitioner has remitted the amount of Rs.1,00,000/- directed to be paid as a condition for the interim order and the Bank has no objection in considering the application (if any) to be submitted by the petitioner for seeking the benefit of One Time Settlement under the aforesaid scheme.

Having heard the learned counsel for the petitioner and the learned counsel appearing for the respondent Bank and taking into consideration the submissions recorded as above, this writ petition will stand disposed of permitting the petitioner to approach the Bank for One Time Settlement provided such application for One Time Settlement is made within a period of one week from today (02.02.2026). If the petitioner makes an application for One Time Settlement, within the aforesaid period of one week, the competent authority of the respondent Bank shall take a decision on the said application having regard to the provisions of the scheme and shall communicate to the petitioner the amount to be paid as One Time Settlement and also the time within which the said amount has to be paid. If the petitioner is offered One Time Settlement, the petitioner shall duly and faithfully comply with the terms of One Time Settlement. If the petitioner fails to comply with the terms of settlement, it will be open to the respondent Bank, to continue with the proceedings initiated against the petitioner.

The writ petition will stand disposed of as above.

Sd/-