Courts can grant opportunities for loan repayments under defined conditions despite defaults, balancing creditor rights with debtor relief.

JUDGMENT

Dated this the 30^th day of January, 2026 The petitioner availed a term loan of ₹10,00,000/- from the respondent Bank, out of which an amount of ₹6,20,000/- was disbursed on 11.07.2023. As there was no construction and no repayment of the loan amount, the respondent Bank initiated proceedings under the SARFAESI Act and issued Ext. P1 notice dated 12.11.2025 under Section 13(2) thereof. The petitioner has not, till date, submitted any reply to the said notice. The petitioner shall submit a reply to the Section 13(2) notice.

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

3. It is submitted on behalf of the respondent Bank that the petitioner committed default in repayment of the loan and the outstanding amount as on today is Rs.7,00,954/- (Rupees seven lakhs nine hundred fifty four only). It is 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 installments.

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:

(i) The petitioner shall pay the outstanding amount, of Rs.7,00,954/- (Rupees seven lakhs nine hundred fifty four only) along with any accrued interest, cost and allied charges in fifteen equated monthly installments.

(ii) The 1^st installment shall be paid on or before 28.02.2026. The remaining installments shall be paid on or before the 28^th day of every succeeding months.

(iii) In case of failure to make payment of any one of the installments as directed above, the bank shall be free to take possession of the secured assets. The bank shall proceed against the petitioner in accordance with law.

(iv) Till such time, all coercive proceedings against the secured assets shall be deferred.