STATE BANK OF INDIA versus ARVINDRA ELECTRONICS PVT. LTD.

STATE BANK OF INDIA versus ARVINDRA ELECTRONICS PVT. LTD.

The High Court's order extending time beyond the schedule in the sanctioned OTS was unsustainable; OTS benefits are not a matter of right and are subject to eligibility and the terms of the sanction letter, and rescheduling or modifying the OTS payment schedule amounts to altering the contract which requires mutual consent under Section 62 of the Indian Contract Act; accordingly the High Court order granting further time was quashed and the writ petition dismissed.

Parties
Appellant: State Bank of India; Respondent: Arvindra Electronics Pvt. Ltd.
Jurisdiction
India
Judgment Date
04 November 2022
Procedural Posture
Civil Appeal / Appeal From High Court Judgment Dated 10.03.2022 in CWP No.12953 of 2018
Outcome
Appeal allowed; impugned High Court judgment and order dated 10.03.2022 quashed and set aside; original writ petition dismissed
Legal Topics
One Time Settlement (ots), Article 226, Writ of Mandamus, Extension of Time, Section 62 Indian Contract Act, Eligibility Criteria, Rescheduling of Payments
Banking Constitutional Law Contract Law Civil Procedure One Time Settlement (ots) Article 226 Writ of Mandamus Extension of Time +3 more

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Parties

State Bank of India

Appellant

Arvindra Electronics Pvt. Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment Dated 10.03.2022 in CWP No.12953 of 2018

Legal Issues

  1. 1 Whether the High Court can, under Article 226, extend time to make payment under a sanctioned OTS beyond the schedule in the sanction letter
  2. 2 Whether benefit under an OTS scheme can be claimed as a matter of right
  3. 3 Whether the High Court can issue a writ of mandamus directing a bank to grant OTS de hors eligibility criteria

Ratio Decidendi

The High Court's order extending time beyond the schedule in the sanctioned OTS was unsustainable; OTS benefits are not a matter of right and are subject to eligibility and the terms of the sanction letter, and rescheduling or modifying the OTS payment schedule amounts to altering the contract which requires mutual consent under Section 62 of the Indian Contract Act; accordingly the High Court order granting further time was quashed and the writ petition dismissed.

Court Disposition

Appeal allowed; impugned High Court judgment and order dated 10.03.2022 quashed and set aside; original writ petition dismissed

Orders

  • Impugned judgment and order dated 10.03.2022 quashed and set aside
  • Original writ petition (CWP No.12953 of 2018) dismissed