The court upheld the enforceability of repayment terms under the One Time Settlement provisions while allowing an installment repayment alternative due to default.

JUDGMENT

The petitioner availed credit facilities from the respondent bank. On default being committed, proceedings were initiated under the Kerala Co-operative Societies Act , 1969, and obtained an award determining the liability of the petitioner. On the award being put to execution, the petitioner has approached this Court.

2. When this matter came up for consideration before this Court on 29-07-2025, this Court passed the following interim order.

“Admit.

The learned Government Pleader takes notice for respondent No. 1. Issue notice to respondent Nos. 2 and 3 by speed post.

It is submitted that the petitioner is prepared to pay the loan amount due to the bank in instalments.

Further proceedings pursuant to Exhibit P3 shall stand deferred by two months.”

When the matter is taken up for consideration today, it is the submission of the learned counsel appearing for the petitioner that the petitioner was offered a One Time Settlement (OTS) through communication dated 15-01-2026 under the നവകേ(cid:4)രളീയം കുടിശ്ശി(cid:4) നിവാരണം-2025- 2026. It is submitted that the writ petition may be adjourned to enable the petitioner to attempt settlement under the OTS, as the scheme has now been extended till 31-03-2026.

3. I am of the view that, in the light of the fact that the petitioner applied for and obtained an OTS, it is for the petitioner to clear the liability in terms of the OTS. It is seen from the communication dated 15-01-2026 (a copy of which has been made available to me for perusal) that, against the outstanding liability of Rs.54,32,217/-, the petitioner was permitted to settle the liability by paying a sum of Rs.42,19,504/-, provided the amount was paid on or before 30-01-2026. It is thus clear that the petitioner was offered a substantial concession, and if the petitioner failed to avail the benefit of such concession, the petitioner cannot be granted any further relief in this writ petition. The claim of the petitioner that he is ready to pay off the loan amount in instalments does not appear to be bona fide in the facts and circumstances noticed above.

4. However, the learned counsel appearing for the respondent bank submits that the petitioner can be permitted to clear the total liability of Rs.55,51,890/- in some instalments, without availing the benefit of any OTS.

5. Having regard to the circumstances of the case and the submissions made as recorded above, I am of the view that the petitioner can be granted an opportunity to repay the outstanding amount in 20 instalments.

6. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.55,51,890/- along with any accrued interest, costs and bank charges from the petitioner in the following manner:

i.The petitioner shall pay the outstanding amount of Rs.55,51,890/- together with any accrued interest, costs and bank charges in 20 equated monthly instalments;

ii. The first instalment shall be paid on or before

31-03-2026. The subsequent instalments shall be paid on or before the last working day of the succeeding months;

iii.In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with the law;

iv.In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance.

The writ petition is disposed of as above.

Sd/-