The court established the principle of allowing borrowers to regularise loan accounts under specified conditions, balancing creditor rights with debtor recovery.

BASANT BALAJI J ======================

W.P.(C) No. 3051of 2026 ========================

Dated 28^th day of January, 2026 JUDGMENT The petitioners had availed a loan from the respondent Bank for a sum of ₹8,52,056.55 by creating a mortgage over the residential property owned by them. Owing to unforeseen circumstances, the petitioners defaulted in remitting the equated monthly instalments, pursuant to which the loan account was classified as a Non-Performing Asset. Thereafter, the respondent Bank initiated recovery proceedings under the provisions of the SARFAESI Act . The Bank has now issued a sale notice dated 17.12.2025 proposing to conduct an e-auction on 28.01.2026 for the purpose of realisation of the alleged outstanding dues.

2. The learned counsel for the respondents, on instructions, submitted that although the sale is posted for today, there are no bidders and, therefore, there is no immediate apprehension to the petitioners with regard to the sale. It is further submitted that the respondent Bank is willing to regularise the loan account, provided the overdue amount is paid on or before 31.03.2026. The overdue amount as on today (28.01.2026) is stated to be approximately ₹1,25,000/- (Rupees One Lakh Twenty-Five Thousand only).

3. The learned counsel for the petitioners submits that they are ready to remit Rs.1,00,000/- (Rupees One lakh only) within a period of one month and balance on or before 31.03.2026.

4. Given the above, the petitioners can be granted an opportunity to repay the total overdue amount on the following conditions, and if they are met, to have the loan accounts regularised.

1. The petitioners shall pay a sum of Rs.1,00,000/- (Rupees one lakh only) within a period of one month.

2. The balance overdue amount, together with any accrued interest, costs and charges, shall be paid on or before

31.03.2026.

3. Petitioners shall continue to pay the regular EMIs/instalments along with the instalments directed above.

4. In the event of default of any one instalment, or the lumpsum amount as directed above, the respondent Bank shall be entitled to proceed in accordance with the law;

5. All coercive proceedings shall be kept in abeyance to enable the petitioners to repay the entire amount directed above.

The writ petition is disposed of as above.

Sd/-