CUTTACK: The Orissa High Court has declined to interfere in the loan recovery process adopted by State Bank of India for cancellation of sanctioned one-time Settlement (OTS) scheme as part of loan recovery process in the case of a person who had availed loans from its Udala branch in Mayurbhanj district.
The bank had sanctioned the OTS scheme under which the person was to pay Rs 60 lakh in three instalments of Rs 20 lakh each by July 26, 2023. The bank cancelled the sanctioned OTS on December 1, 2023 after the petitioner failed to pay the entire Rs 60 lakh.
Dismissing a petition in this regard, the single judge bench of Justice SK Panigrahi said, “In the present case, where the petitioner has failed to honour the terms of the OTS scheme, this court is of the view that judicial intervention would set an undesirable precedent. Moreover, courts should support the process of loan recovery by avoiding unwarranted interference in matters where the lender has acted within the bounds of law.”