Can High Court Extend "One Time Settlement(OTS)" Time Period Under Writ Jurisdiction? Supreme Court To consider

Shruti Kakkar

30 May 2022 1:41 PM GMT

  • Can High Court Extend One Time Settlement(OTS) Time Period Under Writ Jurisdiction? Supreme Court To consider

    The Supreme Court recently agreed to consider whether the High Court under Article 226 can extend the time period mentioned in the One Time Settlement ("OTS") even when under the OTS a specific time limit was fixed and concession was granted. The bench of Justices MR Shah and BV Nagarathna agreed to examine the question while considering a Special Leave Petition assailing Punjab...

    The Supreme Court recently agreed to consider whether the High Court under Article 226 can extend the time period mentioned in the One Time Settlement ("OTS") even when under the OTS a specific time limit was fixed and concession was granted.

    The bench of Justices MR Shah and BV Nagarathna agreed to examine the question while considering a Special Leave Petition assailing Punjab and Haryana High Court's order dated March 10, 2022.

    "The question which is posed for consideration of this Court is whether in exercise of powers under Article 226 of the Constitution of India, the High Court can extend the time period mentioned in the One Time Settlement (OTS) when under the OTS, a specific time- limit was fixed and the concession was given and the amount due and payable was reduced substantially. Issue notice, returnable on 12.08.2022," the bench observed in its order.

    Case Before Punjab and Haryana High Court

    Arvindra Electronics had approached the High Court seeking issuance of a writ of certiorari for quashing communication dated May 16, 2018 by which the Bank had declined the petitioner's request to grant a further time beyond stipulated date of 21.05.2018 for making repayment of balance amount of `2.52 Crores (alongwith interest on Bank rate) out of total One Time Settlement amount of `10.54 Crores.

    Referring to the ratio in Anu Bhalla and another Vs. District Magistrate, Pathankot, where the Division Bench specifically held that in exercise of the jurisdiction under Article 226 of the Constitution of India, the High Courts would have the jurisdiction to extend the period of settlement as originally provided for in OTS letter, but laid down certain guidelines to be followed, Sardar Associates Vs. Punjab and Sind Bank 2009 (8) SCC 257, Central Bank of India v. Ravindra 2002 (1) SCC 367 the High Court had said,

    "So we do not agree that the deadline fixed in the OTS sanction letter is sacrosanct and cannot be extended by the Bank for any reason whatsoever. Accordingly we set aside the rejection letter Annexure P1 dt.16.5.2018 issued by the respondent refusing to grant time to petitioner to comply with the terms of the OTS."

    Case Title: State Bank of India v Arvindra Electronics Pvt Ltd| SLP (civil) 9218/2022

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