Authority: High Court of Judicature at Madras

Order Date: 06 July 2026

Case Overview

  • Petitioners: Sunil Kumar Bafna, Lalith Kumar Bafna, Anil Bafna, Pradeep Kumar Bafna.
  • Respondents: Indian Overseas Bank (IOB) represented by its Chief Manager, Asset Recovery Management Branch, Central Office, Annex Building, 3rd Floor, 763 Anna Salai, Chennai 600 002, and the Authorized Officer of the same branch.
  • Petition filed under Article 226 of the Constitution seeking a writ of certiorari and mandamus to: (a) call for records of IOB in proceedings No. Nil dated 01‑10‑2024 and related proceedings of the Authorized Officer dated 22‑10‑2024; (b) quash the impugned proceedings; and (c) direct IOB to grant a repayment period of six months (without interest) or one year (with interest) for the sum under the One‑Time Settlement (OTS) sanctioned on 21‑06‑2024 and extended on 05‑09‑2024, in accordance with RBI OTS guidelines (RBI/2005‑06/153 dated 03‑09‑2005).
  • The petition also included Writ Petition No. 33510 of 2024 and Writ‑Miscellaneous Petitions (WMP) Nos. 36286, 36287, 36289 of 2024.

Order Details

1. The Court observed that the petition had become infructuous. Accordingly, the petition was dismissed, but the petitioners were granted liberty to pursue the OTS proposal if it remains pending with the respondents.

2. No order as to costs was made.

3. WMP No. 36286 of 2024, filed by the petitioners to permit them to join and file a single writ petition, was allowed, subject to payment of the court fee within two weeks from the date of the order.

4. All other interim applications filed by the petitioners were closed.

5. The order was pronounced by the Hon'ble Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan.

Final Outcome

  • The petition seeking certiorari, mandamus, and quashing of proceedings was dismissed as infructuous.
  • Petitioners may continue to negotiate or pursue the pending One‑Time Settlement with IOB.
  • Permission granted to consolidate multiple writ petitions into a single filing, contingent upon timely court‑fee payment.
  • No costs awarded to either party.

Topics: Bank Litigation, One‑Time Settlement