No Borrower Can Take Advantage of OTS Scheme as a Right: A Case Study of Bijnor Urban Cooperative Bank Limited vs. Meenal Agarwal & ors. 2021

Abstract

One-time settlements give borrowers the chance to pay off their outstanding obligations with lenders for a lower sum and are frequently employed in the lending sectors. But it's important to realise that borrowers don't necessarily have a claim to such settlements. The main determinants of a borrower's capacity to negotiate and get a one-time settlement are examined in this abstract. Clarifying the idea of one-time settlements and their importance in debt resolution is the first step in the examination. The structure governing these settlements is then discussed, highlighting the fact that borrowers must adhere to strict requirements established by lenders or organisations. If a one-time settlement is possible, it depends critically on the borrower's status, the lender's policies, and the type of debt. This abstract also examines the lender's viewpoint, stressing their reasons for providing one-time settlements, including risk reduction and quicker fund recovery. It also clarifies the negotiation process and the significance of openness and honesty in forging agreements that benefit both parties. In conclusion, this abstract emphasises that while one-time settlements may be a good way to reduce debt, borrowers are not automatically entitled to them. To successfully negotiate a one-time settlement, borrowers must be well-informed, responsible, and ready to engage in serious negotiations with their lenders. Borrowers who want to successfully negotiate the debt resolution procedure must comprehend the dynamics of one-time settlements.