The court permits debtors to file representations in one-time settlement cases under the SARFAESI Act.

JUDGMENT

(Dated this the 27^th day of January, 2026) The prayers in the writ petition are as follows;

“(i) call for the records related to Exhibit P1 to P4 and issue writ or any other direction to direct the respondents to provide time up to 31/03/2026 to remit the balance amount under One time settlement provided as per Exhibit P3.”

2. The petitioner along with her husband and son availed a loan from the 2^nd respondent bank for an amount of Rs.35,00,000/-(Rupees thirty five lakhs only) in the year 2024. When there was default in repayment, the bank issued demand notice under the SARFAESI Act . The property mortgaged was a residential property. Therefore, the petitioner approached the bank to remit the amount under the one-time settlement scheme. The bank permitted the petitioner to settle the loan account under the one-time settlement.

3. As per Ext.P3 one-time settlement, petitioner was directed to remit Rs.45 lakhs as the one-time settlement dues. Taking note of the deposit of Rs.4 lakhs on 28.07.2025 the petitioner was instructed to pay an amount of Rs.16 lakhs on or before 16.09.2025, and the remaining 25 lakhs on or before 31.12.2025. The petitioner remitted only 4 lakhs and subsequently on Rs.3,90,000/- (Rupees three lakhs ninety thousand only) on 24.12.2025. Since the amount as ordered in Ext.P3 could not be remitted, the bank is taking steps to take the physical possession of the secured assets. Hence the petitioner seeks period up to 31.03.2026 to clear the account under the one-time settlement scheme. The petitioner has not approached to the bank claiming a fresh one-time settlement till date. In such circumstances the petitioner is given time for one week for file a fresh representation.

4. If such a representation is filed within a period of one week, the bank shall consider the same and inform the petitioner about the outcome and amount which is to be paid by the petitioner.

The writ petition is disposed of as above.

Sd/-