Authority: Supreme Court of India

Order Date: 31‑07‑2026

Case Overview

  • Petitioners: Vijay Prasade & Ors (secured creditor) filed Special Leave Petition (C) No. 14976/2026 arising from a High Court judgment dated 09‑04‑2026 in WP No. 3703/2026.
  • Respondent: IIFL Home Finance Ltd. & Ors (borrowers) were earlier directed by the Debts Recovery Tribunal, Pune, to settle the loan account; failure to comply led to High Court ordering physical possession of the secured property with police protection.
  • The High Court permitted the borrowers to settle the loan as ordered by the DRT, failing which possession would be handed over to the secured creditor.
  • The Supreme Court, on 29‑05‑2026, sought clarification on total dues and a possible one‑time settlement (OTS).
  • An authorized officer of IIFL Home Finance appeared in person and offered an OTS of Rs 1,80,00,000 (Rs 1.80 crore).
  • The Court directed that an initial payment of Rs 65,00,000 be deposited on or before 15‑07‑2026, which has been duly deposited.

Payment Schedule Ordered

| Tranche | Amount Due (Rs) | Due Date |

| First Installment | 30,00,000 | 31‑08‑2026 |

| Second Installment | 30,00,000 | 30‑09‑2026 |

| Third Installment | 30,00,000 | 31‑10‑2026 |

| Fourth Installment | 25,00,000 | 30‑11‑2026 |

| Total Remaining | 1,15,00,000 | — |

Directions

1. Upon receipt of the above‑scheduled payments, the 1st respondent (IIFL Home Finance Ltd.) shall hand over possession of the subject property to the petitioners, free of encumbrances and together with the security documents already deposited.

2. If any installment is defaulted, IIFL Home Finance Ltd. is entitled to resume possession proceedings against the property.

3. Upon full settlement of the Rs 1.80 crore, all civil and criminal proceedings between the parties shall stand closed; each party shall withdraw any pending proceedings against the other.

4. Regarding the FIR and related criminal complaint, IIFL Home Finance Ltd. shall cooperate to facilitate closure of the investigation without prejudice to the petitioners.

5. The Court reiterates that the hand‑over of possession and closure of proceedings are conditional upon complete compliance with the payment undertaking.

Final Outcome

  • The Special Leave Petition stands disposed of.
  • Any pending applications, if existent, are also disposed of.

Topics: Court Order, One‑Time Settlement, Property Possession