Court permits installment repayment of a defaulted loan under cooperative society provisions.

JUDGMENT

Petitioner is the co-borrower in respect of the housing loan availed by the 3^rd respondent (who is none other than the son of the petitioner) from the respondent bank. On default being committed, proceedings were initiated against the petitioner under the provisions of the Kerala Co-operative Societies Act , 1969, leading to the issuance of Exhibit P1 notice. This prompted the petitioner to approach this Court by filing the above writ petition.

2. Learned counsel appearing for the petitioner would submit that the petitioner could not repay the loan on account of financial stringency . It is submitted that the petitioner may be permitted to clear the overdue amount in some instalments.

3. Heard the learned counsel appearing for the respondent bank also. Learned counsel appearing for the respondent bank would submit that, the overdue amount, as on 20.11.2025, is Rs.9,81,000/- (Rupees Nine lakhs and eighty one thousand only) and the respondent bank has no objection in granting some reasonable instalments to the petitioners to clear the overdue amount provided a substantial amount is paid immediately.

4. Having regard to the circumstances of the case and the submissions made as recorded above, I am of the view that the petitioner can be granted an opportunity to repay the overdue amount in eighteen instalments.

5. Accordingly, there will be a direction to the respondent bank to accept repayment of the overdue amount of Rs.9,81,000/- (Rupees Nine lakhs and eighty one thousand only) along with accrued interest, costs and bank charges from the petitioner in the following manner:

(i) The petitioner shall pay a sum of Rs.1,00,000/- (Rupees One lakh only) on or before 10.12.2025;

(ii) The balance overdue amount of Rs.8,81,000/- (Rupees Eight lakhs and eighty one thousand only) shall be repaid in eighteen equated monthly instalments along with any accrued interest/costs and charges;

(iii) The first instalment shall be paid on or before 10.01.2026 and the subsequent instalments shall be paid on or before the 10^th day of the succeeding months;

(iv)Petitioner shall continue to pay the regular EMI’s/instalments along with the instalments directed above;

(v) In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with law;

(vi) In order to enable the petitioner to repay the entire amounts as above, all coercive proceedings shall be kept in abeyance.

The writ petition is disposed of as above.