The Supreme Court has used its special powers under Article 142 of the Constitution to provide relief to a woman widowed during the Covid-19 pandemic, directing a reduction in her outstanding loan liability. The apex court emphasized the need for “complete justice” in exceptional circumstances where strict application of contractual and statutory rules would cause undue hardship.

The petitioner had approached the court after two Madras High Court orders in 2024 denied her plea to repay a loan under an expired one-time settlement (OTS) scheme and refused to direct the bank to release the title deeds of her late husband’s property. Left as the sole caregiver for her children, she faced mounting debt and financial instability following her husband’s death.

Observing her precarious financial condition, the Supreme Court scaled down the woman’s loan liability to a manageable amount. It directed the lender to revise repayment terms, ensuring that she would not be pushed into further economic distress while taking care of her family.

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The court underlined that the Covid-19 pandemic had extraordinary impacts on families, livelihoods, and financial stability. While Article 142 is intended for rare use, the bench highlighted that courts may exercise it to provide equitable relief when conventional legal remedies fail to address severe hardship.

Legal experts noted that the ruling reflects the judiciary’s balanced approach, weighing lender rights against social justice. It reinforces the idea that courts can intervene in deserving cases to protect vulnerable individuals without broadly affecting the legal framework governing loans or settlements.

While the order does not establish a general precedent for loan waivers, it provides the petitioner with financial breathing space and hope to rebuild her life after personal and economic loss. Observers said the decision underscores the human-centric approach the judiciary can adopt in exceptional situations, blending legal principles with compassion.

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