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2026 Supreme(Ker) 284
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P.V.BALAKRISHNAN, J.
Ranjith T., S/o. Raveendran T. – Petitioner
Versus
Axis Bank Ltd, Represented By Its Authorized Officer – Respondent
WP(C) No. 5771 of 2026
Decided On : 06-04-2026
For the Petitioner: Sri. M. Muhammed Shafi, Smt. T. Rasini, Smt. Hiba Shamar, Smt. Aleena Vinoy.
For the Respondent: Shri. Madhu Radhakrishnan, Shri. Deepak Ashok Kumar.
Court permits debtor to regularize loan by paying overdue amounts in installments, emphasizing cooperation between debtor and bank under the SARFAESI Act.
Headnote:(A) Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - Coercive action taken under the Act challenged - Bank permitted to allow the petitioner to clear overdue amount through installments - Amount due was Rs.4,64,181/- as of 27.03.2026. (Para 1, 3)
(B) Opportunity for payment - The court found favor in allowing the petitioner to regularize the loan account upon payment of the overdue amount, and detailed the payment plan including an initial sum of Rs.1,00,000/- and subsequent installments. (Para 4)
Facts of the case:
The petitioner challenged the actions of the bank based on overdue payments and sought relief to regularize the loan account by paying the overdue amount.
Findings of Court:
The petitioner was granted the opportunity to pay the overdue sum with clear instructions for installment payments.
Issues: The primary issue was whether the petitioner could be granted an opportunity to clear the overdue loan amounts and regularize his account with the bank.
Ratio Decidendi: The court emphasized the balance of convenience and the beneficial nature of allowing the petitioner to pay in installments, recognizing the bank’s willingness to cooperate.
Result: Writ petition allowed with conditions for payment.
| Table of Content |
|---|
| 1. petitioner's grievance against coercive bank action. (Para 1) |
| 2. bank's proposal for installment payment of dues. (Para 2 , 3) |
| 3. court's directive for repayment and loan regularization. (Para 4) |
JUDGMENT :
P.V. BALAKRISHNAN, J.
It is aggrieved by the coercive action taken by the respondent under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the ‘SARFAESI Act' for short), this writ petition has been preferred by the petitioner.
2. Heard the learned counsel for the petitioner and the learned Standing Counsel for the respondent.
3. The learned counsel for the respondent submitted that the bank has no objections in permitting the petitioner to clear the overdues with interest, by way of installments and regularise the loan account since, the same is only beneficial to the bank. He also submitted that the overdue amount as on 27.03.2026, is Rs.4,64,181/- (Rupees four lakhs sixty four thousand one hundred and eighty one only).
4. Hence, considering the submissions made by the learned counsel for the respondent and the facts and circumstances of this case, I am of the view that the petitioner can be granted an opportunity to clear the overdue amount of Rs.4,64,181/- (Rupees four lakhs sixty four thousand one hundred and eighty one only) with interest, in installments and regularise the account subject to terms.
Accordingly, this writ petition is allowed as follows;
(i) The petitioner shall remit a sum of Rs.1,00,000/- (Rupees one lakh only) on or before 30.04.2026 to the bank.
(ii) Thereafter, the petitioner shall remit the balance overdue amount with interest in 10 equal monthly installments, starting from May, 2026 and such payments shall be made on or before the end of every month.
(iii) The petitioner shall also continue to pay the regular EMIs/Installments along with the installments as directed afore.
(iv) If the petitioner complies with the above directions, the respondent shall regularise the loan account and in case of failure to pay any of the installments as ordered afore, the bank will be at liberty to continue with the coercive steps already taken.
