A party defaulting on loans may pursue a settlement scheme, obliging the financial institution to promptly consider the application.

JUDGMENT

Petitioner was a subscriber to eleven chitties and had availed three chitty loans from the 4^th and 5^th respondents. However, the petitioner defaulted in repayment of the amount in those accounts. The liability is due from the year 2013-2014 and as on date, an amount of Rs.3,21,89,668/- remains due.

2. According to the petitioner, a One Time Settlement Scheme is now available with the 4^th and 5^th respondents it can be availed by him to repay the liability. Though the said scheme is in existence, the respondents have proceeded with revenue recovery proceedings as per Ext.P1 and Ext.P2. Hence, the petitioner was compelled to approach this Court challenging the said proceedings.

3. Having heard the learned counsel for the petitioners, the learned counsel for respondents 4 and 5 as well as the learned Government Pleader, I am of the view that this writ petition can be disposed of giving liberty to the petitioner to pursue the One Time Settlement Scheme.

4. The learned Standing Counsel pointed out that the One Time Settlement Scheme is available only till 31.03.2026.

5. Despite the above, the learned counsel for the petitioners expressed the petitioners’ interest to pursue the said remedy and also submitted that the petitioners are bona fide intending to clear their liability.

In view of the above, if in case, the petitioner files an application before the 3^rd respondent seeking the benefit of the One Time Settlement Scheme, a decision shall be taken by the competent amongst respondents 2 and 3 regarding the request as expeditiously as possible, at any rate, within an outer period of three days from the date of receipt of a copy of the application, provided it is filed before the 3^rd respondent on or before 18.03.2026. Thereafter, the petitioner will be at liberty to clear the entire liability under the One Time Settlement Scheme by 31.03.2026. It is clarified that, if in case, the petitioner defaults in repayment of the amount due under the One Time Settlement Scheme after it is offered, respondents will be at liberty to proceed with action under Ext.P1 and Ext.P2.

Sd/-

BECHU KURIAN THOMAS JUDGE SMF APPENDIX OF WP(C) NO. 9804 OF 2026 PETITIONER EXHIBITS Exhibit P1 THE TRUE COPY OF THE NOTICE ISSUED TO THE 1ST PETITIONER IN FORM NO.11 UNDER SECTION 36 OF THE KERALA REVENUE RECOVERY ACT DATED