The High Court may dispose of writ petitions concerning loan recovery by directing financial institutions to consider settlement under existing bank schemes, provided the borrower files a formal application within the stipulated time.

THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 18.06.2026, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

JUDGMENT

This writ petition has been filed seeking the following relief:-

“Issue a writ of mandamus or any other appropriate writ, order or direction directing the 2nd respondent to grant 24 equal monthly installments for repayment of the entire outstanding amount till that period all further proceedings in pursuant to Exhibit-P1 shall be kept in abeyance.”

2. This Court by interim order dated 19.05.2026 directed as follows:-

“Admit.

Issue notice by speed post to respondents 2 and 3.

Notice to 1st respondent is dispensed with for the time being.

Any sale pursuant to Exhibit P1 shall not be confirmed for a period of one month subject to the condition that the petitioner remits a sum of Rs.1,00,000/- towards the loan liability within a period of 10 days from today.

Post on 18.06.2026.”

3. The petitioner has not complied with the condition imposed in the interim order dated 19.05.2026 and has filed I.A.No.1 of 2026 seeking extension of time.

4. When this matter is taken up for consideration today (18.06.2026), the learned counsel appearing for the petitioner submits that the petitioner may be permitted to approach the Bank for One Time Settlement under the One Time Settlement scheme now in force (Ashwas-2026).

5. The learned counsel for the respondent Bank has no objection.

Accordingly, this writ petition will stand disposed of directing that if the petitioner files an application for One Time Settlement under the One Time Settlement scheme now in force (Ashwas – 2026), within a period of ten days from today (18.06.2026), the said application shall be considered and disposed of by the competent authority of the respondent Bank keeping in mind the provisions of the scheme. If the petitioner is granted One Time Settlement, the petitioner will be governed by the terms of One Time Settlement and if the petitioner fails to remit the amounts as permitted, it will be open to the respondent Bank to continue with the proceedings initiated against the petitioner.

The writ petition is ordered accordingly.