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2026 Supreme(Ker) 285
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P.V.BALAKRISHNAN, J.
Shamna C.K. – Petitioner
Versus
Manappuram Home Finance Ltd., Represented By Its Authorized Officer – Respondent
WP(C) No. 8385 of 2026
Decided On : 07-04-2026
For the Petitioner: Sri. Jelson J. Edampadam.
For the Respondent: Sri. C. Harikumar, Shri. Arun Kumar M.A., Smt. Farah Jyothi Pradeep, Smt. Aiswariya V.R., Smt. Gayathri Menon K.
The court affirmed the rights of borrowers under the SARFAESI Act to regularise loans by repaying overdue amounts in structured installments.
Headnote:(A) Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - Coercive action under the SARFAESI Act - Petitioners aggrieved by the actions taken by the financial institution - Financial institution allows petitioners to regularise loan account by clearing overdue in installments of Rs.3,21,678/- (Paras 1-4).
(B) Writ jurisdiction - The court has the authority to grant relief in cases of financial disputes allowing for repayment arrangements (Para 3).
Facts of the case:
Petitioners challenged coercive actions taken by the financial institution and sought an opportunity to clear overdue loans.
Findings of Court:
The court permitted the petitioners to repay the overdue amount in 10 installments while continuing regular payments.
Issues: The main issue was the legality of coercive actions under the SARFAESI Act.
Ratio Decidendi: The court emphasized the importance of allowing debtors to regularise accounts by providing a structured repayment plan without undue coercion.
Result: Writ petition allowed.
| Table of Content |
|---|
| 1. coercive action under sarfaesi act (Para 1) |
| 2. petitioners' opportunity to clear dues (Para 2 , 3) |
| 3. court's order for payment installments (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 petitioners.
2. Heard the learned counsel for the petitioners and the learned Standing Counsel for the respondent.
3. The learned counsel for the respondent submitted that the respondent has no objections in permitting the petitioners to clear the overdues with interest, by way of installments and regularise the loan account since, the same is only beneficial to it. She also submitted that the overdue amount as on today, is Rs.3,21,678/- (Rupees three lakhs twenty one thousand six hundred and seventy eight 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 petitioners can be granted an opportunity to clear the overdue amount of Rs.3,21,678/- (Rupees three lakhs twenty one thousand six hundred and seventy eight only) with interest, in installments and regularise the account subject to terms.
Accordingly, this writ petition is allowed as follows;
(i) The petitioners shall remit the entire overdue amount of Rs.3,21,678/- with interest in 10 equal monthly installments, starting from April 2026 and such payments shall be made on or before the end of every month.
(ii) The petitioners shall also continue to pay the regular EMIs/Installments along with the installments as directed afore.
(iii) If the petitioners comply 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 respondent will be at liberty to continue with the coercive steps already taken.
