The court emphasized the necessity of availing statutory remedies under Section 17 of the SARFAESI Act for contesting orders concerning loan defaults, paving the way for equitable relief.

JUDGMENT

(Dated this the 16th day of December, 2025)

The petitioner has approached this Court seeking a declaration that he is entitled to get instalment facility to remit the entire outstanding amount to the respondent and to direct the respondent to accept monthly instalments from the petitioner to clear the outstanding loan amount.

2. The petitioner had availed credit facilities from the respondent bank for running a small-scale furniture establishment. The loan availed included a Cash Credit Overdraft Limit facility (CCOL) and a term loan sanctioned under the Emergency Credit Line Guarantee Scheme (ECLGS). The repayment was defaulted due to the COVID-19 pandemic and because the petitioner's wife was hospitalised and underwent major surgery. Consequently, funds had to be diverted towards medical expenses. Ext.P1(a) is the discharge summary produced to show that the petitioner's wife was suffering from heart disease. The loan was classified as a Non Performing Asset on 10.12.2023 and the outstanding liability towards CCOL facility was Rs.20,51,262.62 and Rs.74,569.37 towards the ECLGS facility.

3. The secured asset, having an extent of 3.84 Ares together with a residential building, was mortgaged. The respondents initiated proceedings under Section 13(2) and 13(4) of the SARFAESI Act and filed M.C. No.1659/2025 before the Chief Judicial Magistrate Court, Kollam and obtained Ext.P2 order. Thereafter, the Advocate Commissioner issued notice to the petitioner for taking physical possession on 18.12.2025. At this point of time, the petitioner has approached this Court. 4. The respondent, on instructions, submits that the outstanding amount as on today comes to Rs.30,45,038/-. The petitioner seeks the indulgence of this Court to grant instalments to pay the entire outstanding amount. The learned counsel for the respondent vehemently opposes the same.

5. Taking note of the fact that the remedy of the petitioner lies before the Debts Recovery Tribunal under Section 17 to challenge Ext.P2 order, it is appropriate to relegate the petitioner to approach the Debts Recovery Tribunal to challenge the orders against him.

6. It is seen that the physical possession is proposed to be taken on 18.12.2025. Thus, to enable the petitioner to obtain certified copies of the documents from the Chief Judicial Magistrate Court, Kollam and to avail the statutory remedy, the petitioner seeks some breathing time. Therefore, I dispose of this writ petition granting the petitioner two weeks' time to obtain the certified copies of the documents from the Chief Judicial Magistrate Court and to approach the Debts Recovery Tribunal by availing the statutory remedy.

7. In the meantime, it is appropriate to defer the taking of physical possession for a period of two weeks from today. The petitioner shall remit an amount of Rs.10,00,000/- (Rupees ten lakhs only) within a period of two weeks from today, as a pre-condition for deferring the taking of physical possession.

The writ petition is disposed of as above.