Petitioner can repay agricultural loan in installments despite prior default under SARFAESI Act provisions.

JUDGMENT

(Dated this the 8^th day of December, 2025)

The petitioner and his mother availed an agricultural loan in the year 2019 from the 1^st respondent bank, offering the title deed of the property owned by the mother of the petitioner. Upon default, the loan account was classified as a Non-Performing Asset (NPA). Subsequently, the respondent Bank initiated proceedings against the secured assets under the SARFAESI Act , 2002. A notice under Section 13(2) of the Act was issued demanding the petitioner to clear the entire outstanding amount within 60 days, following which the petitioner paid Rs. 1,15,000/-. While so, the petitioner received a notice dated 24.07.2025 under Section 13(8) of the Act. The petitioner therefore prays for a direction to the 1^st respondent bank to regularize the loan account by permitting him to clear the overdue amount in 30 equal monthly installments.

2. The learned Standing Counsel for the Bank on instructions submits that the outstanding amount as on date is Rs.11,81,000/-. The Bank is willing to grant installments to the petitioner to wipe out the entire outstanding amount.

3. Having heard the learned counsel on both sides and also the fact the respondent has no objection in granting installments facility to the petitioner to wipe out the outstanding liability, I dispose of the writ petition as follows:

a) The petitioner shall remit the outstanding amount of Rs.11,81,000/- (Rupees Eleven lakhs eighty one thousand only) together with any accrued interest, cost and allied charges, in fifteen (15) equated monthly installments, starting from 08.01.2026 and the subsequent installments shall be paid on or before 8^th of every succeeding months.

b) In the event of default of any one installment, the respondent-Bank shall be entitled to proceed in accordance with law.

d) All coercive proceedings shall be kept in abeyance to enable the petitioner to repay the entire amount as directed above.

e) The respondent-Bank is permitted to appropriate Rs.40,000/- (Rupees Forty thousand only) deposited in the savings account of the petitioner.