Writ jurisdiction cannot force one-time settlement disclosure or acceptance absent a policy or statutory duty.

A borrower cannot invoke Article 226 to compel a bank to disclose its OTS benchmark or to accept, or positively consider, a settlement proposal where no enforceable OTS policy, statutory duty, or legitimate expectation is shown. In loan recovery matters involving public funds, and especially where SARFAESI and insolvency proceedings are already pending, the bank's decision whether to grant one-time settlement remains a matter of commercial discretion. A writ of mandamus cannot be used to alter contractual loan terms or force settlement relief in the absence of a legal obligation, so interference was unwarranted.

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Issues: Whether a borrower or guarantor can invoke writ jurisdiction to compel a bank to disclose its OTS benchmark and to accept or positively consider a settlement proposal, notwithstanding pending SARFAESI and insolvency proceedings.

Analysis: The dispute concerned recovery of public money under contractual loan arrangements, where proceedings had already been initiated under the SARFAESI Act and the Insolvency and Bankruptcy Code, 2016. The petitioner was unable to show any specific bank policy or enforceable OTS scheme conferring a right to settlement, or any legal requirement that the benchmark had to be disclosed. In the absence of a demonstrated policy, regular practice, or statutory mandate, no legitimate expectation arose in favour of the borrower. The Court relied on the settled principle that a writ of mandamus cannot be issued to compel a financial institution to grant OTS relief, and that such decisions fall within the bank's commercial discretion, particularly where the bank may recover the dues from secured assets and the request would effectively alter the terms of the loan contract.

Conclusion: The borrower or guarantor had no enforceable right to compel disclosure of the benchmark or to insist on acceptance of the OTS proposal, and interference under Article 226 was unwarranted.

Ratio Decidendi: In matters of loan recovery involving public funds, a borrower cannot claim OTS as a matter of right or obtain a writ directing the bank to grant settlement or disclose a benchmark in the absence of a governing policy or statutory obligation; such decisions remain within the bank's commercial wisdom.

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