Court allows debtor to repay loan in instalments over coercive recovery after initial substantial payment.

JUDGMENT

This writ petition has been filed challenging the recovery proceedings initiated by the respondent bank to recover amounts due under credit facilities availed by the petitioner from the respondent bank.

2. Learned counsel appearing for the petitioner would submit that the petitioner is only seeking the liberty of repaying the liability in some instalments.

3. Learned counsel appearing for the respondent bank would submit that though the term of the loan availed by the petitioner is till 2030, the bank cannot permit regularization of the loan account as after availing the loan in the year 2020, only a sum of Rs.267/- was paid by the petitioner. It is submitted that, notwithstanding the above, the bank has no objection in permitting the petitioner to clear the outstanding amount in instalments provided a substantial amount is paid immediately. It is submitted that, the outstanding amount, as on 17.01.2026, is Rs.16,98,787/- (Rupees Sixteen lakhs ninety eight thousand seven hundred and eighty seven only).

4. Having regard to the facts and 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 outstanding amount in fifteen instalments provided a substantial amount is paid immediately.

5. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.16,98,787/- (Rupees Sixteen lakhs ninety eight thousand seven hundred and eighty seven only) along with accrued interest, costs and bank charges from the petitioner in the following manner:

(I) The petitioner shall pay a sum of Rs.2,00,000/- (Rupees Two lakhs only) on or before 02.03.2026;

(ii) The balance outstanding amount of Rs.14,98,787/- (Rupees Fourteen lakhs ninety eight thousand seven hundred and eighty seven only) shall be repaid in fifteen equated monthly instalments along with any accrued interest, costs and charges;

(iii) The first instalment shall be paid on or before 02.04.2026 and the subsequent instalments shall be paid on or before the 02^nd day of the succeeding months;

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

(v) In order to enable the petitioner to repay the entire amounts as above, all coercive proceedings shall be kept in abeyance.

The writ petition is disposed of as above.

Sd/-