KERALA HIGH COURT ASKS SBI TO RELEASE TITLE DEEDS: OTS BENEFIT CANNOT BE DENIED AFTER ACCEPTING DELAYED INSTALLMENT

The Kerala High Court in the case Sham PS v State Bank of India observed and has directed the State Bank of India to release the title deeds of a residential property mortgaged by a petitioner on payment of outstanding debts under the One Time Settlement, OTS Scheme.

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The Bank in the case did not confer the benefit of the One Time Settlement, OTS Scheme to the petitioner, citing a delay in payment of the second instalment within the stipulated time.

The bench headed by Justice Dinesh Kumar Singh in the case observed that the Bank did not raise an objection wherein it is stated that the petitioner delayed the payments of the second instalment or that the OTS Scheme had lapsed.

The court in the case observed that the Bank accepted the second instalment paid by the petitioner under the OTS Scheme, even if it was made with some delay.

The court stated that once the petitioner has deposited the amount and the bank has accepted, it would not be proper for the Bank to say that the petitioner did not comply with the terms and conditions of the two OTS schemes in not making the payment of the second instalment on time.