Disposed¶17

Manorama Sanitary v. Canara Bank, Arm Branch

Orissa HC19 Feb 2025WP(C)/5255/2025

Case brief

AI extract

What is this about?

Keywords: One Time Settlement; OTS cancellation; OTS Scheme; CANARA Bank ARM Branch Mangalabag Cuttack; borrower; loan account settlement; unpaid OTS amount with interest; fresh OTS proposal; fifteen-day deposit window; disposed with observation; conditional direction; banking - loan settlement/recovery; W.P.(C) 5255 of 2025; High Court of Orissa; order dated 19.02.2025; K.R. Mohapatra; Sanjay Kumar Mishra.

What did the court decide?

Conditional relief: if the petitioner deposits the unpaid amount of the previous OTS along with interest within fifteen days and submits a fresh OTS proposal, the Bank will consider the fresh proposal in accordance with law as expeditiously as possible, preferably within fifteen days therefrom. The cancellation order dated 3rd December, 2024 was not set aside by the Court. ¶17

Manorama Sanitary Vs Canara Bank, Arm Branch — Orissa HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

¶17

Issue for consideration

Whether the Court should direct that the cancellation of the petitioner's One Time Settlement by CANARA Bank (order dated 3rd December, 2024) be set aside. +1 more

¶12

Court's answer

The Court disposed of the writ petition with an observation that, in the event the petitioner deposits the unpaid amount of the previous OTS along with interest within a period of fifteen days and submits a fresh proposal for OTS, the fresh proposal will be considered by the Bank in accordance with law.

¶17

Ratio / Principle

The Court specified that the fresh OTS proposal, if so submitted, will be considered by the Bank in accordance with law as expeditiously as possible, preferably within a period of fifteen days from its submission.

¶17

Detailed headnote1 paragraphs

High Court of Orissa at Cuttack, W.P.(C) No.5255 of 2025 (order dt. 19.02.2025; K.R. Mohapatra & Sanjay Kumar Mishra, JJ.): Petitioner, a borrower, whose OTS proposal (accepted by CANARA Bank, ARM Branch, Cuttack on 3rd October, 2024 at Rs.47 lakhs payable by 30th November, 2024) was cancelled by the Bank vide order dated 3rd December, 2024 after payment of only Rs.24,50,000/-, sought setting aside of the cancellation and a direction to consider a fresh OTS proposal with the unpaid amount plus interest. The Court disposed of the petition with an observation that if the unpaid OTS amount with interest is deposited within fifteen days and a fresh OTS proposal is submitted, the Bank will consider it in accordance with law as expeditiously as possible, preferably within fifteen days therefrom. No statute or precedent was discussed.

¶1

Signature Not Verified Digitally Signed Signed by: ROJALIN NAYAK Designation: JUNIOR STENOGRAPHER Reason: Authentication Location: HIGH COURT OF ORISSA, C UTT ACK Date: 20-Feb-2025 12:13:36

¶2

IN THE HIGH COURT OF ORISSA AT CUTTACK

¶3

W.P.(C). NO.5255 OF 2025 Manorama Sanitary, Bhadrak and …. Petitioners another

¶4

Mr. Prasanta Kumar Satapathy, Advocate

¶5

-versus-

¶6

State of Odisha and others …. Opp. Parties Mr. Bibekananda Udgata, Advocate (For Bank)

¶7

CORAM:

¶8

JUSTICE K.R. MOHAPATRA JUSTICE SANJAY KUMAR MISHRA

¶9

Order No.

¶10

ORDER 19.02.2025

¶11

1. This matter is taken up through hybrid mode.

¶12

Petitioner in this writ petition prays for a direction to set aside the cancellation of One Time Settlement vide order dated 3^rd December, 2024 (Annexure-1) issued by the CANARA Bank, ARM Branch, Mangalabag, Cuttack and to direct the Bank to consider fresh proposal of the Petitioner for settlement of the loan account by accepting the unpaid amount of the previous OTS along with interest accrued thereon.

¶13

It is submitted by Mr. Satapathy, learned counsel that the Petitioner, being a borrower, had submitted a proposal for settlement of his loan account under the OTS Scheme, which was accepted by CANARA Bank, ARM Branch, Cuttack on 3^rd October, 2024 at Rs.47 lakhs to be paid by 30^th November, 2024. But the Petitioner could pay only Rs.24,50,000/- by the stipulated date. Hence, the settlement under the OTS proposal was cancelled vide order dated 3^rd December, 2024 by the Bank. It is submitted by learned counsel for the Petitioner that he is ready and willing to submit a fresh proposal for settlement of his loan account under the OTS Scheme by paying the balance OTS amount as per the previous settlement along with interest.

¶14

Page 1 of 2

¶15

Signature Not Verified Digitally Signed Signed by: ROJALIN NAYAK Designation: JUNIOR STENOGRAPHER Reason: Authentication Location: HIGH COURT OF ORISSA, C UTT ACK Date: 20-Feb-2025 12:13:36

¶16

Mr. Udgata, learned counsel for the Bank submits that if the Petitioner submits his proposal for OTS Settlement within a period of fifteen days by depositing the residual amount of the previous OTS proposal along with interest accrued thereon, his fresh OTS proposal will be considered in accordance with law.

¶17

In view of the submission made by learned counsel for the parties, this Court disposes of this writ petition with an observation that in the event the Petitioner deposits the unpaid amount of the previous OTS along with interest within a period of fifteen days and submit a fresh proposal for OTS, the same will be considered by the Bank in accordance with law as expeditiously as possible preferably within a period of fifteen days therefrom.

¶18

(K.R. Mohapatra) Judge

¶19

Rojalin

¶20

(S.K.Mishra) Judge

¶21

Page 2 of 2

Manorama Sanitary v. Canara Bank, Arm Branch

Case brief

What is this about?

What did the court decide?

Manorama Sanitary v. Canara Bank, Arm Branch

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Procedural history

Parties & counsel

Coram

Case details

Similar cases

M/S. Meher Agencies, Cuttack Vs State of Odisha

Rashmita Behera Vs State of Odisha

Gopinath Dalei @ Dalai Vs State of Orissa

Janaki Ballav Pattanaik Vs Chief General Manager, Msme, Bbsr.

Patitapaban Swain Vs State of Odisha

Sabyasachi Mahakul Vs the State of Odisha