The court allowed structured repayment of overdue loan amounts, emphasizing fair opportunity for borrower and procedural adherence by the lender.

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

W.P.(C) No. 45523 of 2025 ========================

Dated 27^th day of January, 2026 JUDGMENT The petitioner availed a home loan of ₹28,00,000/- from the 2nd respondent Bank on 28.12.2023 by creating an equitable mortgage through deposit of the title deeds in respect of his property having an extent of 4.40 Ares comprised in Re-Sy. No. 472/12 (Old Sy. No. 143/2A) of Ummannoor Village. Owing to severe financial difficulties, the petitioner could not remit the equated monthly instalments in time, resulting in arrears of instalments payable to the 2nd respondent Bank.

2. In view of the default, the respondent Bank initiated proceedings under the provisions of the SARFAESI Act and issued a notice under Section 13(4), intimating that symbolic possession of the secured asset was taken on 28.04.2025. Thereafter, the Bank initiated further recovery proceedings in respect of the secured property by filing M.C. No. 1687/2025 before the Chief Judicial Magistrate Court, Kollam. By order dated 25.11.2025, the learned Magistrate allowed the said application and appointed an Advocate Commissioner to take physical possession of the secured asset. Aggrieved by the said proceedings and the order directing taking over of physical possession, the petitioner has approached this Court.

3. Heard the learned counsel for the petitioner and the learned counsel for the respondents.

4. During the hearing, the petitioner confined the relief to an opportunity to repay the overdue amount in instalments and to obtain regularisation of the loan accounts.

5. It was submitted on behalf of the respondent Bank that the petitioner committed default in repayment of the loan, and the total overdue amount as on 27.01.2026 is ₹2,62,767/- (Rupees Two Lakh Sixty-Two Thousand Seven Hundred and Sixty-Seven only). It was further submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent Bank is willing to accept repayment of the overdue amount in limited instalments and regularise the loan accounts. This is recorded.

6. Given the above, the petitioner 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 petitioner shall pay a sum of Rs.1,00,000/- (Rupees one lakh only) within a period of one month.

2. The balance overdue amount, along with any accrued interest, costs and charges, shall be paid in 6 equal monthly instalments starting from 10^th March 2026 and subsequent instalments shall be paid on or before 10^th of every succeeding months.

3. Petitioner 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 law;

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

The writ petition is disposed of as above.

Sd/-