A guarantor in a chitty transaction can challenge coercive recovery proceedings and negotiate repayment terms with the creditor.

JUDGMENT

The limited relief sought for by the petitioner is to set aside Ext.P1 notice issued by the respondent and to direct all further proceedings to be kept in abeyance pursuant to the said notice.

2. Petitioner is the guarantor for a chitty transaction amounting to Rs.5,00,000/- in favour of Sri.Rameshkumar, who obtained the chitty for an amount of Rs.3,99,999/- and subsequently committed default. Since the chitty holder committed default, recovery proceedings were initiated against the petitioner being the guarantor. Hence, this petition, challenging the coercive proceedings.

3. The learned Standing Counsel, upon instructions, submitted that a total amount of Rs.3,61,082/- is due from the petitioner as on 26.01.2026 and is willing to accept the repayment in reasonable instalments.

4. Having heard the learned counsel for petitioner and the learned Standing Counsel for the respondent, I am of the view that the writ petition can be disposed of.

In view of the above, there will be a direction to the respondent to accept repayment of the amount of Rs.3,61,082/- due from the petitioner in 16 equated monthly instalments along with future interest and cost, the first of which payable on 27.02.2026, and the remaining instalments payable on the 27^th of every succeeding month. It is clari event of default of any two consecutive instalments, the respondent shall be at liberty to initiate coercive proceedings to recover the amount in accordance with law.

The writ petition is disposed of.

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