In Brief
A cooperative bank in Uttar Pradesh rejected a borrower's application for One Time Settlement (OTS) of a non-performing loan account, stating she was ineligible under the OTS Scheme. The High Court issued a writ of mandamus directing the bank to positively consider her case. The Supreme Court held that OTS is a discretionary benefit, not a right. No writ of mandamus can compel a bank to grant OTS if the borrower fails to meet eligibility criteria or if the bank can recover the full amount through auction of mortgaged property. The bank's decision, made after proper consideration by the Settlement Advisory Committee, was within its commercial discretion. The Court set aside the High Court's order, allowing the appeal.
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