The court established that the borrower must comply with repayment terms to avoid possession of secured property.

JUDGMENT DATED THE 30^TH DAY OF JANUARY 2026 The petitioner, the principal borrower had availed a term loan from the respondent bank for a sum of Rs.6,00,000/- in the year 2020. At the time of availing the loan facility, the sole residential property in the name of the petitioner was given as security for the loan transaction. Due to financial stringency, the petitioner defaulted in the instalments. The respondent bank, therefore, approached the Chief Judicial Magistrate Court, Thiruvananthapuram, seeking assistance of an Advocate Commissioner for taking possession of the property. The Advocate Commissioner, thus appointed has issued notice to the petitioner stating that he will take possession of the property. The petitioner sought for instalments and some time for paying the overdue amount, but the same was not considered by the bank. Hence, the petitioner has approached this Court to issue a direction to the respondent to grant sufficient instalments to pay off the overdue amount and regularise the loan account.

2. On 04.11.2025, an interim order was passed by this Court deferring the coercive steps against the petitioner on condition that the petitioner remits an amount of Rs.1,00,000/- within one month. It is submitted that the said interim order has been complied with.

3. The learned Standing Counsel for the Bank, on instructions, submits that the overdue amount as on date is Rs.7,15,572/- (Rupees Seven lakhs fifteen thousand five hundred and seventy two only). The Bank has no objection in regularizing the loan account.

4. Having heard the learned counsel on both sides, and taking note of the fact that the Bank is proposing to take physical possession of the property and since the Bank has no objection in regularizing the loan account, I deem it appropriate to dispose of this writ petition with the following directions:

a) The petitioner shall remit the overdue amount of Rs.7,15,572/- (Rupees Seven lakhs fifteen thousand five hundred and seventy two only) together with any accrued interest, cost and allied charges, in twelve (12) equated monthly instalments, starting from 20.02.2026 and the subsequent instalments shall be paid on or before 20^th of every succeeding months.

b) The petitioner shall continue to pay the regular EMIs/instalments along with the instalments as directed above.

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

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

Sd/-

BASANT BALAJI JUDGE