Authority: Supreme Court of India (Special Leave Petition Bench of Hon'ble Mr. Justice K.V. Viswanathan and Hon'ble Mr. Justice Arun Palli)

Order Date: 22-08-2026

Case Overview

  • Parties: Geeta Rani Sharma (Petitioner) vs. The State of Uttar Pradesh & Others (Respondents); Punjab National Bank (PNB) involved as the financial institution.
  • Nature of Proceeding: Petition(s) for Special Leave to Appeal (C) No(s). 4133/2024 arising from the impugned final judgment and order dated 18-09-2023 in WC No. 28602/2023 passed by the High Court of Judicature at Allahabad.
  • Background: The matter was settled by mutual agreement, documented in a settlement letter dated 14‑07‑2026 (Ref.No.PNB/OTS/822800/JBW006749/2024‑25). The settlement pertains to a One‑Time Settlement (OTS) proposal (OS‑0000000000000505638) for Rs 38,81,000 plus legal charges, concerning NPA accounts 6133009900000775 and 601100NC00000548.
  • Key Settlement Terms:

1. Up‑front Amount: Rs 600,000 deposited with the Bank; non‑refundable under any circumstance.

2. Balance Amount: Rs 3,281,000 plus applicable legal charges to be paid on or before 12‑Oct‑2026 (lump‑sum payment).

3. Payment Mechanism: Post‑dated cheque or ECS mandate may be used for the balance amount; the Bank may enforce the instrument if the e‑OTS fails due to non‑deposit.

4. Default Clause: Any default on installment(s) will cause the e‑OTS to fail, withdrawing all reliefs and allowing the Bank to recover the entire dues after adjusting any received OTS amount.

5. Interest: Interest at prevailing 1‑Year MCLR + 1% will be charged if the OTS amount is paid after 90 days from approval.

6. No‑Dues Certificate: Will be issued only after filing a consent decree and receipt of the entire OTS amount with applicable interest.

7. Recovery Charges: The Bank may recover separate charges for accounts referred to State Recovery Laws, remitting them to State Authorities.

8. Security Release: Charges on security/title deeds mortgaged in the account will be released only after full OTS receipt; if the same security is mortgaged elsewhere, release requires competent authority approval and closure of related accounts.

9. Criminal Proceedings: The OTS is a commercial decision and does not affect any ongoing criminal investigation by CBI/Police.

10. Right of Recompense: The Bank reserves the right to adjust terms if other lenders receive more favorable OTS offers.

11. Continuation of Legal Actions: The Bank may continue legal/recovery actions from the current stage if OTS fails, without further notice.

12. Consent Decree Requirement: If the Bank has filed a suit, a consent decree must be obtained from the court where the suit is pending.

13. Withdrawal of Counter‑Claims: Any case filed by the borrower/guarantor against the Bank or its officials must be withdrawn immediately.

14. Termination Clause: Non‑compliance with any term results in immediate termination of the OTS without further notice.

  • Payment Confirmation: The court was informed that the petitioner has paid the due amount and that the Bank has no further claim against the petitioner.

Final Outcome

  • The Special Leave Petition is disposed of in accordance with the settlement terms.
  • The Bank acknowledges receipt of the settlement amount and confirms that no further dues exist.
  • The Court expressed appreciation to counsel for both parties, the Bank’s legal representatives, and the Secretary, DLSA, Ghaziabad for facilitating the settlement.

Topics: Legal Settlement, Banking OTS