Case Note & Summary
The petitioner, Mr. Balkishan Boob, is the owner of a property mortgaged to the Bank of Maharashtra. The property was borrowed by M/s. Bhagwan Cotton Ginners Pvt. Ltd. from the Bank in 2014, and the Bank initiated recovery proceedings, bringing the mortgaged property to auction. The petitioner filed a writ petition under Article 226 of the Constitution of India seeking a direction to the Bank to consider his One Time Settlement (OTS) offer made in a representation dated January 16, 2021, in terms of the Bank's schemes 'Maha Rahat Yojana 2020-21' and 'Maha Samadhan Yojana 2020-21'. The petitioner offered to pay Rs. 4.4 Crores under the OTS scheme. The Bank opposed the petition, arguing that the petitioner was not a borrower and that the OTS schemes were not applicable. The court, after hearing both sides, held that the Bank must consider the petitioner's representation and pass appropriate orders in accordance with law within two weeks. The court did not express any opinion on the merits of the OTS offer but directed the Bank to communicate its decision to the petitioner. The petition was disposed of with this direction.
Headnote
A) Constitutional Law - Writ Jurisdiction - Article 226 of the Constitution of India - Direction to Consider OTS Offer - Petitioner, owner of mortgaged property, sought direction to Bank to consider his OTS offer under the Bank's schemes - Court held that the Bank must consider the representation dated 16.01.2021 in accordance with law and communicate decision within two weeks - Held that the Bank cannot ignore a valid OTS offer and must act fairly (Paras 2-4).
Issue of Consideration
Whether the Bank is obliged to consider the petitioner's One Time Settlement (OTS) offer made under the Maha Rahat Yojana 2020-21 and Maha Samadhan Yojana 2020-21.
Final Decision
The writ petition is disposed of with a direction to the respondent Bank to consider the petitioner's representation dated 16.01.2021 and pass appropriate orders in accordance with law within two weeks from the date of receipt of a copy of this order. The Bank shall communicate its decision to the petitioner.
Law Points
- Writ jurisdiction under Article 226 of the Constitution of India
- One Time Settlement (OTS) scheme
- Bank's obligation to consider OTS offer
- Maha Rahat Yojana 2020-21
- Maha Samadhan Yojana 2020-21
