In Brief
The petitioners obtained a bank loan of Rs. 25 lakh and later applied for one-time settlement of Rs. 18 lakh, which the bank accepted. After paying Rs. 8 lakh in two instalments, the petitioners requested extension of time due to COVID-19 pandemic losses. The bank neither accepted nor rejected the request but initiated auction proceedings. The High Court dismissed the writ petition, holding that borrowers have no enforceable right to one-time settlement and that statutory remedies under the Securitisation Act exist. However, it directed the bank to independently consider the borrowers' representation for extension, given they had paid substantial amounts and the property had not yet been sold.
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