The Jammu & Kashmir and Ladakh High Court upheld rejection of a one-time-settlement proposal where the secured assets’ net present value exceeded the dues and the proposal did not encompass the borrower’s aggregate credit liabilities as required by the Bank’s policy.
Judge / Bench — Hon’ble Mr. Justice Sanjay Parihar, Judge
Substantial repayments and willingness to offer more did not create an enforceable right to compromise. The earlier permission to submit a fresh proposal likewise was not a direction to accept it. Without challenging the policy or showing its breach, mandamus could not require the Bank to disregard its commercial framework. The petition was dismissed, preserving lawful remedies and requiring recovery strictly under SARFAESI and other applicable law. Counsel should distinguish fair consideration under policy from a borrower’s asserted right to obtain a particular concession.
Case — Fayaz Ahmad Khan v. The J&K Bank Limited and others · WP(C) No. 2580/2026 · 2026-10-13 · Srinagar wing
Advocates appearing — Petitioner — Mr. Mir Manzoor, Advocate. Respondents — Mr. Rabinder Singh, Advocate (identified in paragraph 6).