Court allows installment repayment of a mortgage loan despite defaults, balancing bank recovery needs.

JUDGMENT

The petitioner availed a mortgage loan 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, prompting the petitioner to approach this court by filing the above writ petition.

2. The learned counsel appearing for the petitioner would submit that the petitioner may be permitted to clear the entire liability in installments.

3. The learned counsel appearing for the respondent bank submits that the outstanding amount due from the petitioner as on 18.11.2025 is Rs.14,35,700/-. It is submitted that some reasonable installments can be given to the petitioner to clear the entire liability. It is submitted that there are several writ petitions pending before this court filed by depositors stating that their deposits are not being returned by the bank. It is submitted that the property which was mortgatged for the purposes of securing the repayment of the loan by the petitioner is also mortgaged as a security for repayment of loans availed by the son and daughter-in-law of the petitioner. It is submitted that those loans were also availed on the same day as the loan availed by the petitioner. It is submitted that, on account of the fact that this writ petition is pending, the bank has not been able to proceed with the sale of the property to recover the amounts due from the son and daugher-in- law of the petitoiner also. It is submitted that, while the bank has no objection in granting some instalments to the petitioner to clear the liability, considering the fact that large number of depositors have approached this court seeking return of their deposits, the number of instalments may be limited.

4. Having heard the learned counsel for the petitioner and the learned counsel appearing for the respondent bank and having regard to the facts and 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 outstanding amount in nine (9) equal monthly instalments.

5. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.14,35,700/- along with interest, bank charges and costs from the petitioner in the following manner:

(i) The outstanding amount of Rs.14,35,700/- together with any accrued interest, bank charges and costs shall be repaid in nine (9) equated monthly instalments;

(ii) The first instalment shall be paid on or before 05.12.2025 and subsequent instalments shall be paid on or before the first working day of every succeeding month;

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

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

It is made clear that if the property of the petitioner has been mortgaged to secure any other loan including the loan stated to have been availed by the son and daughter-in-law of the petitioner, the directions contained in this judgment regarding suspension of coercive proceedings to enable the repayment of the liability in instalments will apply only to the loan availed by the petitioner and not to the loans stated to have been availed by the son and daughter-in-law of the petitioner. It is also made clear that, it will be open to the respondent bank to proceed for recovery of the amounts due from the son and daughter-in-law of the petitioner, in accordance with the law and the directions contained in this judgment will not prevent the bank or the sale office