Borrowers who had repaid about 92% of a housing loan sought a mandamus directing DCB Bank to consider their OTS representation dated 30.09.2025. The court declined to direct grant of OTS but disposed of the petition directing the bank to decide the representation in accordance with law within four weeks.
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NC: 2026:KHC:13359 WP No. 38482 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF MARCH, 2026
BEFORE
THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI
WRIT PETITION NO. 38482 OF 2025 (GM-DRT)
BETWEEN:
Digitally signed by SUVARNA T Location: HIGH COURT OF KARNATAKA
BOTH RESIDING AT: NO.13, 2ND FLOOR, 8TH CROSS, KRISHNAPPA LAYOUT, SHAMPURA DODAMMADEVI, TEMPLE STREET ARABIC COLLEGE, BENGALURU - 560 045 KARNATAKA
…PETITIONERS
(BY SMT. FARHEEN, ADVOCATE)
AND:
DCB BANK LIMITED RAJAJINAGAR BRANCH, OFFICE AT NO.650/12, BEE EM AVENUE 2ND STAGE,
NC: 2026:KHC:13359 WP No. 38482 of 2025
HC-KAR
D BLOCK DR. RAJKUMAR ROAD, RAJAJINAGAR BENGALURU - 560 010 KARNATAKA REPRESENTED BY ITS BRANCH MANAGER
…RESPONDENT
(BY SRI. SURESH V., ADVOCATE)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO (A) ISSUE A WRIT OF MANDAMUS OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION, DIRECTING THE RESPONDENT DCB BANK LIMITED TO FORTHWITH CONSIDER AND DECIDE THE PETITIONERS' REPRESENTATION DATED 30.09.2025 FOR ONE TIME SETTLEMENT (OTS) OF THEIR HOUSING LOAN ACCOUNT, IN A FAIR, REASONABLE, AND TIME-BOUND MANNER, TAKING INTO CONSIDERATION THE PETITIONERS' MEDICAL CONDITION, FINANCIAL HARDSHIP, REPAYMENT HISTORY, AND THE FACT THAT THE SCHEDULE PROPERTY IS THEIR ONLY RESIDENTIAL HOUSE ECT.
THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI
HC-KAR
ORAL ORDER
Sri.Suresh, learned counsel appearing on behalf of the respondent/Bank.
(a) Issue a Writ of Mandamus or any other appropriate Writ, order or direction, directing the Respondent DCB Bank Limited to forthwith consider and decide the Petitioners' representation dated 30.09.2025 for One Time Settlement (OTS) of their housing loan account, in a fair, reasonable, and timebound manner, taking into consideration the Petitioners' medical condition, financial hardship, repayment history, and the fact that the schedule property is their only residential house-Annexure D
(b) Direct the Respondent Bank to offer a reasonable One Time Settlement (OTS) to the Petitioners, or on such other equitable terms as this Hon'ble Court may deem fit and proper;
(c) Grant such other and further reliefs as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case, in the interest of justice and equity."
availed a housing loan from the respondent Bank and they have been repaying the amounts regularly and diligently. Despite
HC-KAR
having paid approximately 92% of the original disbursed loan amount, the respondent Bank claims that a further sum of Rs.24,00,000/- remains outstanding. The said amount is highly excessive and without considering the repayment already made, petitioners submitted a detailed written representation dated 30.09.2025 , reiterating their request to the respondent bank to grant them a humane and reasonable One Time Settlement (for short 'OTS') and to communicate the terms of such OTS at the earliest. The respondent Bank has received the said representation and the respondent Bank has not responded to the same. Hence, the petitioners have come up before this Court.
NC: 2026:KHC:13359 WP No. 38482 of 2025
HC-KAR
ORDER
SD/(LALITHA KANNEGANTI) JUDGE
SMC List No.: 1 Sl No.: 16
1 issue framed by the court
Whether the bank could be directed to consider the petitioners' representation for one time settlement of their housing loan.
1 provisions across 1 enactments
Shafiulla
Yasmeen
DCB Bank Limited, Rajajinagar Branch
LALITHA KANNEGANTI
As recorded by the court registry
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