Allahabad High Court: One Time Settlement Schemes Are Time-Bound, No Right to Seek Extension

The Allahabad High Court has ruled that every 'One Time Settlement' (OTS) scheme is time-bound and that a borrower has no right to seek an extension beyond the time period mentioned under the scheme.

While dealing with a case where the petitioners had failed to comply with the time-period requirements, the Court held that the Bank cannot be held at fault for cancelling the OTS provided to the petitioners if they do not make the repayment within the prescribed time limit.

It further noted that third-party obligations were already created and that there was no reason to undo the bona fide actions of the Bank.

[M/S Jaharveer Maharaj Agro Pvt. v UOI]