Court can extend timelines of One Time Settlement with bank

Md. Afroz Baig Vs State Bank of India (Telangana High Court)

Telangana High Court held that the court can extend the timelines of One Time Settlement Scheme (OTS) on examination of the facts therein and also satisfying the reasons mentioned therein by the loanee.

Facts-

The respondent bank issued special circular dated 12.10.2020 offering SBI OTS 2020 scheme. Accordingly, the petitioner submitted an application and the bank accepted the same. However, after making some payments, the petitioner did not paid the loan installments i.e. balance amount by 27.07.2021.

The petitioner submitted letter dated 28.07.2021 duly enclosing the cheque for the balance amount. However, the same was not accepted by the bank on the ground that the petitioner has not paid the amount by 27.07.2021. Therefore, the bank vide letter dated 3 1.07.2021, cancelled the OTS scheme and requested the petitioner to repay the entire outstanding amount together with interest. Challenging the same, the petitioner herein has filed the present writ petition.

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