Dismissed an application challenging a one-time settlement in a banking dispute. The court held that a defaulting borrower cannot seek regularization after a settled agreement, enforcing the terms of the one-time settlement despite partial payment offers.
The settlement agreement is enforced and the regularization application is dismissed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
Court of the Presiding Officer Debts Recovery Tribunal, Jaipur
Item No. 75
Case No.SA/311/2026 MS RAMA FASHIONS Vs HDB FINANCIAL SERVICES RAMA
Date: 13.08.2026. Proceedings through hybrid mode Present:
Shri R K Bhargav, Counsel for the Applicant
Ms. Kratika Sharma, Counsel for the Respondent Bank/FI
In this matter, settlement was arrived at between the parties for Rs. 76.00 Lac, out of which Rs. 27.00 Lac was to be paid by 31.07.2026 and balance by 30.09.2026. The borrowers have defaulted, but today he comes and stressed upon he is ready to pay the overdue amount which is approximately Rs. 4.50 Lac.
Once the settlement is arrived at, the borrower cannot stressed any regularization after making the default. The concept of one time settlement is detailed as under:-
The borrower accepts the entire loan, transaction, documentation and terms & conditions of the agreement also. Admits the default and non-payment. Further he accept the entire liability of the bank, including expenses. Thereafter, the borrower seeks some concession from the respondent which in this present case, granted by accepting Rs. 76.00 Lac.
Therefore this SA deserves to be dismissed as all actions of the respondent has been rectified once the OTS proposal has been given and accepted. Further reason for trying to regularize the account is applicant trespassed into the property. Such loan dodgers and defaulters are to be thrown out at age stage as stated by the Hon’ble Supreme Court in numerous cases. They do not deserve any sympathy from the Court.
With these observations, Accordingly, SA stands dismissed, all pending IAs also stands disposed off, if any.
File be consigned to record as per rules. Copy of order be uploaded on website.
(Vimal Gupta) Presiding Officer Debts Recovery Tribunal, Jaipur
cm
2 issues framed by the court
Whether settlement agreement and breached terms validate a applications seeking regularization.
Whether one-time settlement principles outweigh applicant's payment proposals after default.
MS RAMA FASHIONS
HDB FINANCIAL SERVICES
Vimal Gupta
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
