In this Lexpresso special, we decode the Supreme Court's ruling in Assistant General Manager, SBI & Anr. v. Tanya Energy Enterprises, which clarifies borrower rights under One-Time Settlement (OTS) schemes. The Court held that defaulting borrowers have no legal entitlement to demand OTS benefits unless they fully meet the scheme's eligibility conditions—including upfront payments. Importantly, even if a bank cites one reason for rejection, courts can uphold the decision on any valid ground in the record. This landmark ruling underscores that OTS schemes are voluntary concessions, not enforceable rights, reaffirming banks' discretion in managing non-performing loans.
A must-listen for lenders, borrowers, and insolvency professionals navigating India's debt recovery landscape.
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