Jasveer Kaur And Another vs Indian Bank And Another

Sheel Nagu, CJ

The only grievance raised in this petition by the petitioners, who are borrowers, as projected by the learned counsel for the petitioners, is that the One Time Settlement (OTS) proposal, which was made in November 2025, along with an upfront amount of Rs.47,00,000/- deposited with the Bank, the same has not seen the light of the day and it is still under active consideration of the Bank.

The aforesaid situation is not disputed by learned counsel appearing virtually for the respondent-Bank.

Though we have been informed by the learned counsel for the respondent-Bank that notices dated 04.06.2022 and 23.08.2022 u/s 13 (2) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act for brevity) and u/s 13 (4) of SARFAESI Act, respectively, have been issued and followed by sale of one of the mortgaged properties.

Since learned counsel for the Bank has not disputed the fact that the OTS proposal is under active consideration, let the same be decided by the Bank within a period of two months, latest by 30.04.2026.

If the OTS proposal is worked out, then the rights and liabilities of the parties will be decided based on the said OTS, failing which the respondent-Bank shall be free to adopt all permissible coercive steps in accordance with law under the SARFAESI Act for recovery of outstanding dues.

Accordingly, this Court declines interference and disposes of this petition without commenting on merits of the case.