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2026 Supreme(Online)(Ker) 6917

IN THE HIGH COURT OF KERALA AT ERNAKULAM
BASANT BALAJI, J
SUJITH T – Appellant
Versus
THE AUTHORIZED OFFICER, SUNDARAM HOME FINANCE LTD. – Respondent
WP(C) NO. 47885 OF 2025

Advocates:
For the Appellants/Petitioners: SMT.LIDHIYA GEORGE, SMT.SANDRA MARIA BENNY, SMT.APARNA S., SHRI.HASHARURAHIMAN U., SHRI.JAVAD MOIDU, SHRI.SHEHSAD A.S., SHRI.SATHWIK S.J.
For the Respondents: SMT.S.AMBILY

A debtor's ability to repay debts in installments under the SARFAESI Act can allow for relief from coercive measures by the lender.

Headnote:This judgment addresses a writ petition under the SARFAESI Act, 2002 concerning the non-repayment of loans. The petitioner defaulted on payments, leading to the bank's actions. The court finds merit in allowing an installment plan for repayment and states, 'the overdue amount...shall be remitted in ten equated monthly installments.' Key issues include loan default and bank authority under the Act. The court emphasizes the need for compliance and the implications of default. Ultimately, the court orders the petitioner to repay Rs.4,43,012 in installments, maintaining abeyance on coercive actions.

Table of Content
1. loan default leading to bank proceedings. (Para 1 , 2)
2. bank's willingness to regularize the account. (Para 3)
3. court orders repayment in installments with terms. (Para 4)

JUDGMENT

(Dated this the 30th day of January, 2026)

The petitioner availed two loans from the respondent bank in the year 2022. Due to non-repayment of the loan amount, the respondent initiated proceedings under the SARFAESI Act , 2002, by issuing notice dated 30.04.2024 and followed by Ext.P2 notice 02.09.2025 issued under Section 13(4) of the Act.

Aggrieved by the same, the petitioner filed this writ petition. 2. On 19.12.2025, this Court granted an interim order deferring the coercive steps against the petitioner, on condition that the petitioner shall remit 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.4,43,012/-. 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.4,43,012/- (Rupees four lakhs forty three thousand and twelve only) together with any accrued interest, cost and allied charges, in ten (10) equated monthly installments, starting from 10.03.2026 and the subsequent installments shall be paid on or before 10^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

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2026 Supreme(Online)(Ker) 6917

IN THE HIGH COURT OF KERALA AT ERNAKULAMBASANT BALAJI, JSUJITH T – AppellantVersusTHE AUTHORIZED OFFICER, SUNDARAM HOME FINANCE LTD. – RespondentWP(C) NO. 47885 OF 2025

A debtor's ability to repay debts in installments under the SARFAESI Act can allow for relief from coercive measures by the lender.

IN THE HIGH COURT OF KERALA AT ERNAKULAM
BASANT BALAJI, J
SUJITH T – Appellant
Versus
THE AUTHORIZED OFFICER, SUNDARAM HOME FINANCE LTD. – Respondent
WP(C) NO. 47885 OF 2025