The court emphasizes the necessity for banks to consider One Time Settlement applications while defining terms for repayment of dues.

JUDGMENT The petitioner availed credit facilities from the 1^st respondent Bank. On default being committed, proceedings were initiated against the petitioner under the provisions of the Kerala Co-operative Societies Act , 1969 and awards were obtained determining the liability of the petitioner. On the awards being put to execution, the petitioner is before this Court by filing the above writ petition and seeking the following reliefs:

i) Issue a writ of mandamus or any other appropriate writ, order or direction to the 1^st respondent to give the calculation statement of accounts with respect to the two loans taken by the petitioner and copy of the agreement signed between the petitioner and 1^st respondent;

ii) Issue a writ of mandamus or any other appropriate writ, order or direction to the respondents to permit the petitioner to repay the entire amount in 30 equal monthly installments after reducing penal interest etc. or such other equal installments as this Hon’ble Court may direct.

2. The learned counsel appearing for the petitioner would submit that there is a One Time Settlement Adalat scheduled by the 1^st respondent Bank on 13.02.2026. It is submitted that the petitioner may be permitted to approach the Bank and have the liability settled in terms of the One Time Settlement scheme.

3. The learned counsel appearing for the respondent Bank has no objection in a direction being issued to consider the application of the petitioner for One Time Settlement.

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 appears before the competent authority in the Adalat proposed by the respondent Bank on 13.02.2026 and if he submits a proper application for One Time Settlement, such application shall be considered by the competent authority. The competent authority shall extend all possible concessions in terms of the One Time Settlement scheme to the petitioner. If One Time Settlement is granted to the petitioner, he will be governed by the terms of the One Time Settlement and he shall strictly comply with the terms of One Time Settlement. If the petitioner fails to comply with the terms of One Time Settlement, it will be open to the respondent Bank to continue with the proceedings initiated against the petitioner.

5. At this stage, the learned counsel appearing for the petitioner would submit that if the petitioner is unable to pay off the amount, within the time granted for payment under the One Time Settlement scheme, the petitioner may be permitted to clear the liability without the benefits of One Time Settlement in instalments.

6. The learned counsel appearing for the respondent Bank submits that the total amount due from the petitioner is Rs.36,97,065/- (Rs.18,68,043/- towards EP No.1411/2018 and Rs.18,29,022/- towards EP No.1413/2018). He also submits that limited instalments can be granted to the petitioner to clear the liability.

7. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.36,97,065/- (Rupees thirty six lakhs ninety seven thousand and sixty five only) along with any accrued interest, costs and charges from the petitioner without the benefits of One Time Settlement in the following manner if the petitioner fails to comply with the OTS granted to the petitioner:-

(i) The petitioner shall pay the outstanding amount of Rs.36,97,065/- (Rupees thirty six lakhs ninety seven thousand and sixty five only) along with any accrued interest, costs and charges in 15 equated monthly instalments;

(ii) The first instalment shall be paid on or before 27.02.2026 and the subsequent instalment