M/S Sardar Associates & Ors vs Punjab & Sind Bank & Ors

The Supreme Court addressed the authority of the Reserve Bank of India to issue circulars regarding one-time settlements under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Section 13). The Court held that the guidelines issued by the RBI must be adhered to by banks when dealing with non-performing assets, and that the bank's refusal to accept the one-time settlement offer was unjustified. The appeal was allowed, setting aside the previous orders that denied the settlement based on the bank's circular.