M/S SARDAR ASSOCIATES vs PUNJAB & SIND BANK .

The Supreme Court examined 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(2)). The Court held that the guidelines issued by the RBI must be adhered to by banks in settlement cases, and the dismissal of the appellant's writ petition by the High Court was set aside, allowing the appellant to pursue settlement as per RBI guidelines. The judgment emphasized the necessity for banks to follow statutory guidelines in recovery processes.