A borrower may be allowed to repay secured loans in instalments despite defaults.

JUDGMENT

Petitioner availed credit facilities from the

3^rd respondent bank. On default being committed proceedings have been initiated against the petitioner under the provisions of the Kerala Co-operative Societies Act , 1969, and awards were obtained determining the liabilities of the petitioner. On the awards being put to execution, the petitioner approached this Court by filing the above writ petition.

2. During the course of hearing, petitioner has confined the relief to an opportunity for repaying the outstanding amount in instalments.

3. The learned counsel appearing for the

3^rd respondent bank submits the bank has obtained three separate awards under Section 69 of the Kerala Co-operative Societies Act . 1969. It is submitted that the petitioner availed two separate loans in her name. It is submitted that the other loan was availed by third parties and that loan is also secured by a mortgage over the property belonging to the petitioner, which is being proceeded against to recover the amounts due under the awards obtained by the bank in respect of the loans referred to above. It is submitted that total outstanding amount in respect of all the three loans put together, as on

30-01-2026, is Rs.6,74,051/-.

4. The learned counsel appearing for the petitioner submits that, though one loan out of the three loans referred to above was not availed by the petitioner, since the repayment of that loan is also secured by the mortgage of the property belonging to the petitioner, the petitioner may be permitted to clear the liability in respect of all the three loans in instalments.

5. The learned counsel for the respondent bank has no objection to this suggestion of the learned counsel for the petitioner.

6. Having regard to the circumstances of the case and the submissions made as recorded above, I am of the view that the petitioner can be granted an opportunity to repay the total outstanding amount in 15 instalments.

7. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.6,74,051/- (as on 30-01-2026) along with any accrued interest, costs and bank charges from the petitioner in the following manner:

i. The petitioner shall pay the total outstanding amount of Rs.6,74,051/- (as on 30-01-2026) together with any accrued interest, costs and bank charges in 15 equated monthly instalments;

ii. The first instalment shall be paid on or before 28-02-2026. The subsequent instalments shall be paid on or before the last working day of the succeeding months;

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

iv.In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance.

The writ petition is disposed of as above.

Sd/-