M/S Micro Hotel P.Ltd vs M/S Hotel Torrento Limited & Ors

The Supreme Court addressed the legality of the Orissa High Court's directive to the Orissa State Financial Corporation (OSFC) and Industrial Promotion and Investment Corporation of Odisha Ltd. (IPICOL) to reoffer a One-Time Settlement Scheme (OTS) to M/s Hotel Torrento Limited, which had previously failed to comply with the terms of the scheme. The Court held that the High Court's order to restore possession to the 1st respondent was unjustified, emphasizing that the OTS was contingent upon compliance with stipulated conditions under the relevant loan agreements. The judgment reaffirmed the principle that contractual obligations must be adhered to for the enforcement of settlement schemes.