The Madras High Court dismissed a writ petition seeking a mandamus directing Indian Bank to accept a One Time Settlement proposal. The Court held it cannot compel a bank to enter a settlement or fix the amount, leaving the parties to negotiate mutually.
Writ petition dismissed; parties free to enter mutual settlement or approach DRT/DRAT.
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.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED :: 18-11-2019
CORAM
THE HON'BLE DR.JUSTICE VINEET KOTHARI AND
THE HON'BLE MR.JUSTICE C.SARAVANAN
W.P.NO.9238 OF 2019
M/s.Saptagiri Milk Products Ltd. ... Petitioner
-vs-
1. Union of India,
represented by its Secretary,
Ministry of Finance,
Department of Banking,
Sanmadmurg, New Delhi.
2. Reserve Bank of India,
Central Office Building,
18 th Floor, Shahid Bhagat Singh Road,
Mumbai-400 001.
3. Indian Bank Asset Recovery Management Branch,
represented by the Chief Manager,
No.31, Variety Hall Road,
Coimbatore-641 001. ... Respondents
Petition under Article 226 of the Constitution of India, praying for issuance of a Writ of Mandamus directing the third respondent to consider and extend the One Time Settlement Scheme of the Reserve Bank of India for the loan account of the petitioner by applying the statutory and non-statutory guidelines as well as the Circular issued by the Reserve Bank of India by considering the revised One Time Settlement proposal given vide representation, dated 18.02.2019, and thereby give life to the earlier One Time Settlement, dated 26.12.2016, bearing Ref:ARMB Saptagiri Milk OTS 246 – 2016-17 issued by the third respondent herein in favour of the petitioner herein and thereby allow the petitioner to avail the One Time Settlement Scheme as per the guidelines of the Reserve Bank of India and pass appropriate orders with respect to the representation made by the petitioner.
For Petitioner : Mr.R.Thiagarajan For Respondent 3 : Mr.Jayesh B.Dolia
ORDER
(By Dr.Vineet Kothari,J.)
This Writ Petition has been filed by Mr.Saptagiri Milk Products Limited, through its Joint Managing Director – Mr.G.K.Govindaraj, Erode, seeking a mandamus to the third respondent-Indian Bank, Coimbatore, to consider the OTS proposal of the petitioner, given vide letter, dated 18.02.2019.
Sd/-
Assistant Registrar(CCC)
//True Copy//
Sub Assistant Registrar
dixit
To
New Delhi.
+1cc to M/S.Aiyar & Dolia, Advocate, S.R.No.95931 +2ccs to Mr.R.Thiagarajan, Advocate, S.R.No.95809
W.P.No.9238 OF 2019
PVS(CO)
CS/26/12/2019
2 issues framed by the court
Whether a High Court can issue a writ of mandamus directing a bank to enter into a One Time Settlement.
Whether the Court can mandate a specific settlement amount or direct a bank to proceed on a past settlement figure.
M/s. Saptagiri Milk Products Ltd.
Union of India
Reserve Bank of India
Indian Bank Asset Recovery Management Branch
Vineet Kothari
C. Saravanan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
