Court allowed repayment of overdue housing loan amounts in installments, establishing conditions to prevent coercive bank action.

JUDGMENT

(Dated this the 11^th day of November, 2025)

The petitioners availed three housing loans from the respondent bank by mortgaging their sole residential property. Due to non-repayment of the loan amount, the loan account was classified as NPA. On 23.08.2024, the respondent bank issued a demand notice under Section 13(2) of the SARFAESI Act , 2002, followed by a notice dated 13.08.2025 by the Advocate Commissioner, on the basis of the order of the CJM Court, Kozhikode, in CMP No.1819/2025, intimating that the physical possession of the property would be taken on 27.08.2025. Aggrieved by the same, petitioners filed this writ petition.

2. On 21.11.2025, this Court granted an interim order deferring the coercive steps against the petitioners, on condition that the petitioners shall remit an amount of Rs.1,10,000/- within a period of one week from that day and a further sum of Rs.1,10,000/- within a period of two weeks from that day. Today, it is submitted that the said interim order has been complied with.

3. The learned Standing Counsel for the respondent, on instructions, submits that the balance amount overdue as on date is Rs.5,24,501/-. The Bank has no objection in regularizing the loan account.

4. 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 property and since the Bank has no objection in regularizing the loan account, I deem it appropriate to dispose of this writ petition with the following directions:

a) The petitioners shall remit the overdue amount of Rs.5,24,501/-

any accrued interest, cost and allied charges, in ten equated monthly instalments, starting from 12.01.2026 and the subsequent instalments shall be paid on or before 12^th of every succeeding months.

b) The petitioners shall continue to pay the regular EMIs/instalments along with the instalments as directed above.

c) In the event of default of any one instalment, 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/-

BASANT BALAJI JUDGE DSV/12.12.2025 PETITIONERS' EXHIBITS Exhibit P1 COPY OF THE NOTICE DATED 23.08.2024 UNDER SECTION 13(2).