Supreme Court of India

State Bank of India v. Arvindra Electronics Pvt. Ltd.

Neutral citation
Reported as [2022] 13 S.C.R. 1073
Bench M. R Shah and Krishna Murari JJ.
Decided 4 November 2022

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

2 Supreme Court benches have cited this judgment.

What the Court ordered

In view of the above and for the reason stated above, t he impugned judgment and order passed by the High Court granting further time to the respondent – borrower to make the balance payment under the OTS Scheme in exercise of powers under Article 226 of the Constitution of India is unsustainable and the same deserves to be quashed and set aside and is accordingly quashed and set aside.

Judgment, page 11

From the headnote

Bank/Banking: One Time Settlement Scheme (OTS) – No borrower can, as a matter of right pray for a grant for t he benefit of one time settlement scheme – No writ of mandamus can be is sued by the High Court in exercise of Art.226 of the Constituti on of India, directing the financial institution/bank to positively gr ant a benefit of OTS to a borrower – The grant of benefit of OTS Scheme is subject to the eligibility criteria and the guidelines issue d from time to time – In the instant case, State Bank of India sanctio ned a cash credit in favour of the borrower which was classifi ed as NPA

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