The Court mandates that banking institutions must consider One Time Settlement applications under relevant schemes, ensuring compliance with procedural norms.

J U D G M E N T

Petitioner availed credit facilities from the second respondent bank. On default being committed proceedings have been initiated against the petitioner for recovery of the amounts due from him, prompting the petitioner to approach this Court seeking the following reliefs:

(i) Issue a writ or order in the nature of mandamus or direction directing the 2^nd respondent to rework the balance outstanding as per the norms prescribed by the Reserve Bank of India and 1^st respondent and allow the petitioner to close the loan account after reworking of interest as per norms.

(ii) To issue a writ in the nature of mandamus or other appropriate writ or direction commanding the 2^nd respondent to consider and take appropriate decision on the proposal for One Time Settlement after giving petitioner an opportunity to hear on the proposal.

(iii) To issue a direction to the 2^nd respondent to allow petitioner to repay the loan amount in installments after reworking of interest as per norms.

(iv) To dispense with filing of the translation of vernacular documents. And (v) To issue such other order or direction which this Hon’ble Court would deem just and proper in the facts and circumstances of the case.

2. When this matter is taken up for consideration today, the learned counsel appearing for the petitioner submitted that the petitioner may be permitted to avail the benefit of 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".

3. The learned counsel appearing for the respondent bank submits that the term of the One Time Settlement (OTS) scheme referred to above is only till 28.02.2026, and the petitioner may be required to make an application for the benefits of the scheme immediately if he wishes to avail the benefits of the scheme.

4. Having heard the learned counsel for the petitioner and the learned counsel appearing for the respondent bank, this writ petition will stand disposed of directing that, if the petitioner files an application for the OTS in terms of the provisions contained in 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" within a period of one week from today, the said application shall be considered by the competent authority. A decision shall be taken on the amount to be paid by the petitioner. All eligible benefits shall be extended to the petitioner. If the petitioner is granted OTS facility, the petitioner shall duly and faithfully comply with the terms of OTS. 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.

Accordingly, this writ petition is disposed of as above.

Sd/-