A borrower may be permitted to repay a loan in installments after a default, provided they meet specific conditions to avoid recovery actions by the lender.

JUDGMENT

(Dated this the 28^th day of November, 2025)

The petitioners availed an agricultural loan for a sum of Rs.14,50,000/- from the respondent Bank on 27.08.2019 by mortgaging the title deeds of their agricultural properties in Vandanmedu Village in Peermade Taluk, Idukki. Although payments were regular in the initial days, a default occurred, and the respondent Bank initiated recovery proceedings by issuing a possession notice dated 04.01.2024 under Rule 8(1) Security Interest (Enforcement) Rules, 2002 , demanding to repay Rs.20,36,930.38/-. Even though the petitioners made a request before the Bank for granting time to repay the loan, the Bank, without considering the request, issued a sale notice on 17.01.2024 under Rule 8(1). Thereafter, the Bank issued another notice dated 14.05.2024 intending to sell the property in e-auction on 26.06.2024. While so, the Bank had approached the Commercial Court, Kattappana, by filing CS No.13/2024 for realisation of Rs.16,94,006/-. During the pendency of the said suit, the Bank approached the CJM Court, Thodupuzha, for appointment of an Advocate Commissioner to take possession of the secured assets and the Commissioner appointed issued a notice dated 04.11.2025 informing that he would be visiting the secured assets on

30.11.2025 at 10.30 a.m. In such circumstances, the petitioners approached this Court seeking 15 installments to clear the arrears of loan.

2. The learned Standing Counsel for the respondent-

Bank, on instructions, submits that the outstanding amount as on 28.11.2025 is Rs.20,88,313/-. The Bank is ready to grant 15 installments to the petitioners to clear the entire liability.

3. Having heard the learned counsel on both sides, and taking note of the fact that the Bank is proposing to take physical possession of the secured assets, I dispose of the writ petition as follows:

a) The petitioners shall remit the outstanding amount of Rs.20,88,313/- (Rupees Twenty lakhs eighty eight thousand three hundred and thirteen only) together with allied interest and other charges, in fifteen (15) equated monthly installments, starting from 20.12.2025 and the subsequent installments shall be paid on or before 20^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 petitioners to repay the entire amount as directed above.

Sd/-