Default in loan repayment leads to NPA declaration and regulations under SARFAESI Act for loan recovery.

JUDGMENT

Dated this the 31^st day of January, 2026 The petitioner availed a mortgaged loan from the 1^st respondent-Bank for a sum of Rs.15,00,000/-. Since there was default in repayment, the loan was declared as NPA on 03.09.2024 and the respondent Bank issued notice under Section 13(2) of the SARFAESI Act dated 14.10.2024 for clearing the outstanding liability.

2. On 16.12.2025, 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.1,50,000/- 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.4,37,009/-. 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.4,37,009/-

together with any accrued interest, cost and allied charges, in ten equated monthly installments, starting from 20.02.2026 and the subsequent installments shall be paid on or before 20^th of every succeeding months.

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

c) In the event of default of any one installment, 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 Sru PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE NOTICE DATED 14.10.2024 ISSUED UNDER SECTION 13(2) OF THE SARFAESI Act ISSUED FROM THE OFFICE OF THE 2ND RESPONDENT Exhibit P2 A TRUE COPY OF THE NOTICE OF POSSESSION ISSUED FROM THE OFFICE OF THE 2ND RESPONDENT DATED 21.10.2025 Exhibit P3 TRUE PHOTOCOPY OF THE RECEIPT OF DEMAND DRAFT REMITTING AN AMOUNT OF RS.1,50,000/- (RUPEES ONE LAKH FIFTY THOUSAND ONLY) BEFORE THE RESPONDENT BANK DATED 20.01.2026