Kerala High Court Rejects Writ Plea Seeking One Time Settlement Benefits

The Kerala High Court dismissed a writ appeal where borrowers claimed the benefit of a One Time Settlement (OTS) Scheme.

The borrowers had availed three loans from Vazhoor Farmers Service Co-operative Bank Ltd., secured by equitable mortgage over their property, and later defaulted in repayment, leading to arbitration under Section 69 of the Kerala Co-operative Societies Act, 1969 and ex parte awards.

The Court held that OTS benefits are discretionary, not enforceable rights, and cannot be claimed by invoking writ jurisdiction under Article 226.

It found that asking the bank to extend further OTS concessions would amount to rewriting contractual terms. The appeal was dismissed.

[Raju Abraham & Anr. v. State of Kerala & Ors.]