One-time settlement is a commercial concession, not an enforceable right, and secured sale stands absent arbitrariness or mala fides.

A secured creditor acting under Section 29 of the State Financial Corporations Act, 1951 may proceed with sale of mortgaged property after repeated default, and the sale will not be quashed absent proved illegality, arbitrariness, or mala fides. A one-time settlement remains a commercial concession within the Corporation's discretion and does not create an enforceable right in the borrower. Where the borrower was informed of the sale process, given opportunities to obtain a better offer or make payment, and the property was sold through invitation of bids and negotiated settlement at a better price, no mandamus can issue to compel acceptance of the settlement proposal.

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Issues: Whether the sale of the mortgaged property by the Corporation was liable to be quashed, and whether the petitioner was entitled to a writ of mandamus directing consideration or acceptance of his one-time settlement proposal.

Analysis: The Corporation had proceeded under Section 29 of the State Financial Corporations Act, 1951 after repeated defaults by the borrower. The property had been advertised for sale on several occasions, the petitioner was informed of the process, and he was given opportunities to secure a better offer or make the required payment. The material showed that the sale was conducted after inviting bids and that a better price was ultimately obtained through negotiated settlement. A one-time settlement was held to be only a concession within the Corporation's commercial discretion and not a statutory right of the borrower. No material showed that the Corporation had arbitrarily accepted and then rejected a bona fide settlement proposal without justification.

Conclusion: The sale was not shown to be illegal or mala fide, and no mandamus could be issued to compel acceptance of the one-time settlement proposal.

Final Conclusion: The challenge to the sale transaction failed, and the writ petition was not fit for interference in writ jurisdiction.

Ratio Decidendi: A borrower has no enforceable right to compel acceptance of a one-time settlement; where the secured creditor acts under its statutory powers after repeated default and affords adequate opportunity, the sale will not be interfered with absent proved arbitrariness or mala fides.

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