The court permits installment repayment for defaults under financial recovery actions, ensuring compliance with structured terms to avoid coercive measures.

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

W.P.(C) No. 47629 of 2025 ========================

Dated 27th day of January 2026 JUDGMENT The petitioner, who is a guarantor, availed a credit facility from the respondent Bank for a sum of ₹44,00,000/-. The loan was availed from the Mukkam Branch of the Bank and was secured by immovable property measuring 2.52 Ares comprised in Re-Survey No. 16/49 of Kodiyathur Village, Kozhikode Taluk, Kozhikode District. Owing to severe financial difficulties arising from business losses, flood-related issues, and the COVID-19 pandemic, the petitioner defaulted in repayment of the loan. Consequently, the respondent Bank initiated recovery proceedings under the SARFAESI Act . Aggrieved by the same, the petitioner has approached this Court.

2. The learned counsel for the petitioner would submit that the petitioner may be permitted to clear the liability in instalments.

3. It was submitted on behalf of the respondent Bank that the petitioner committed default in repayment of the loan and the present outstanding amount as on 27.01.2026 is ₹17,88,308/- (Rupees Seventeen Lakh Eighty-Eight Thousand Three Hundred and Eight 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 outstanding amount in limited instalments. This is recorded.

4. In view of the above, I am of the view that the petitioner can be granted an opportunity to repay the outstanding amount on the following conditions:

1. The balance outstanding amount of ₹17,88,308/-

(Rupees Seventeen Lakh Eighty-Eight Thousand Three Hundred and Eight only), along with accrued interest, costs, and charges, if any, shall be paid in 8 equal monthly instalments starting from 15th February 2026, and subsequent instalments shall be paid on or before the 15th day of every succeeding month.

2. In the event of default of any one instalment, the respondent Bank shall be entitled to proceed in accordance with law;

3. 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/-