A Writ of Mandamus cannot compel a financial institution to grant benefits under the One Time Settlement scheme, as eligibility criteria must be respected.

O R D E R

The petitioner has approached this Court seeking issuance of a Writ of Mandamus directing the respondents to permit the petitioner to settle the loan account under the One Time Settlement (OTS) scheme by considering the petitioner’s representation dated 22.12.2025.

2. The petitioner had availed a loan by mortgaging his house property. In order to redeem the mortgaged property, the petitioner submitted a representation calling upon respondents 2 to 4 to close the loan account under the One Time Settlement (OTS) scheme. The grievance of the petitioner is that the said representation has not been considered by respondents 2 to 4.

3. Mr. V. Sukumar, learned counsel appearing for respondents 2 to

4, on instructions, placed reliance on the judgment of the Hon’ble Supreme Court in The Bijnor Urban Cooperative Bank Limited, Bijnor and others vs. Meenal Agarwal and others (MANU/SC/125/2021). In the said decision, the Hon’ble Apex Court has categorically held that no Writ of Mandamus can be issued under Article 226 of the Constitution of India directing a financial institution or bank to grant the benefit of a One Time Settlement (OTS) scheme. It has been further held that grant of such benefit is subject to the eligibility criteria and guidelines of the scheme, and it is for the Bank to decide whether the borrower is entitled to such benefit.

4. In view of the above, this writ petition is disposed of with a direction to respondents 2 to 4 to consider the petitioner’s representation dated 22.12.2025 on its own merits and in accordance with law, and pass appropriate orders within a period of six weeks from the date of receipt of a copy of this order. There shall be no order as to costs.