The court grants the petitioner the option to repay loan in installments to prevent coercive recovery actions.

JUDGMENT

Dated this the 30^th day of January, 2026 The petitioner is a theater artist and proprietor of BHARATH communications and ALLEPPEY theaters. Petitioner mortgaged his property having an extend of 12.14 Ares comprised in Survey number 98/3,Resurvey number 461/11/8,461/15,in Block no 1 of kalavoor village , Ambalappuzha Taluk, Alappuzha District to the respondent bank for availing a BDL loan on 15/1/2019 to the tune of Rs.12,00,000/- from the respondent bank.

2. Though the petitioner made remittances promptly during the initial repayment period, he could not pay the repayment installments promptly later due to financial stringency. When the respondent initiated recovery proceedings against the property mortgaged to the respondent , petitioner filed representation to the respondent bank for getting one time settlement option for pay off the entire outstanding including installment dues plus future installments as per the scheme introduced by the respondent as “ASWAS-2021(Non R R).There was a purchaser for the petitioners property mortgaged to the bank and they had entered in to an agreement with the petitioner for sale of the property and given advance to the same. Petitioner had remitted the advance given by them to the bank but the respondent bank had not responded with the representation made by him.

3. Thereafter respondent initiated recovery proceedings under the SARFAESI Act. At this time the petitioner approached this Court by filing WP(C)No.9513/2022 on 21/3/2022. The repayment of loan / advance fell into arrears later. It happened due to reasons beyond the control of the petitioners. Though the petitioner requested the Bank to permit the petitioners to repay the overdue amounts in monthly installments, the Bank authorities were not yielding. The authorities, instead, started coercive proceedings against the petitioner. Hence this Writ Petition Civil is filed.

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

5. It is submitted on behalf of the respondent Bank that the petitioner committed default in repayment of the loan and the outstanding amount in two loans as on date is Rs.20,35,000/- (Rupees twenty lakhs thirty five thousand 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.

6. 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 a lump sum of Rs.5,00,000/-

(Rupees five lakhs only) within three weeks.

(ii) After making the payment of Rs.5,00,000/- as directed above, the petitioner shall pay the remaining outstanding amount in 4 equated monthly installments.

(iii) The 1^st installment shall be paid on or before 02.03.2026. The remaining installments shall be paid on or before the 2^nd day of every succeeding months.

(iv) In case of failure to make payment of any one of the installments or the lump sum amount 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.

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

Sd/-