One Time Settlement (OTS) of Bank Loan is Not a Right of Borrowers

Bijnor Urban Cooperative Bank Limited Vs Meenal Agarwal (Supreme Court of India)

The Apex court of the Nation ruled out in a recent judgement (Dec 15, 2021 reg matter of Bijnor Urban Cooperative Bank Limited) – that no court can direct a bank or a financial institution (FI) to offer one-time settlement (OTS) to a borrower when the bank or FI were of the opinion that it would be able to recover the defaulted amount through auction of assets.

This is a land mark judgement setting right

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