The court grants opportunities for overdue loan repayments while balancing creditor rights under the SARFAESI Act.

BASANT BALAJI J ======================

W.P.(C) No. 47587 of 2025 ========================

Dated 27^th day of January, 2026 JUDGMENT The petitioner availed a loan of ₹20,00,000/- from the respondent bank. At the time of availing the loan, the petitioner created an equitable mortgage over an extent of 2.33 Ares of property comprised in Re-Survey No. 164/12/3/2 in Block No. 4 of Oachira Village, Karunagapally Taluk, Kollam District, as security for the loan. Due to unforeseen financial hardships, including the lingering effects of the COVID-19 pandemic, the petitioner committed defaults in remitting the monthly instalments. Upon such default, the respondent bank classified the loan account as a Non-Performing Asset (NPA) on 01.06.2019 and initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act , 2002. Aggrieved by the initiation of proceedings under the SARFAESI Act, the petitioner has approached this Hon’ble Court.

2. During the hearing, the petitioner confined the relief to an opportunity to repay the overdue amount in instalments and to obtain regularisation of the loan accounts.

3. It was submitted on behalf of the respondent Bank that the petitioner committed default in repayment of the loan, and the total overdue amount as on 27.01.2026 is ₹9,71,295/- (Rupees Nine Lakh Seventy-One Thousand Two Hundred and Ninety-five only). It was 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 overdue amount in limited instalments and regularise the loan accounts. This is recorded.

4. It is submitted that the petitioner has complied with the interim order dated 18.12.2025. Given the above, the petitioner can be granted an opportunity to repay the total overdue amount on the following conditions, and if they are met, to have the loan accounts regularised.

1. The balance overdue amount, ₹9,71,295/- (Rupees Nine Lakh Seventy-One Thousand Two Hundred and Ninety-five only) along with any accrued interest, costs and charges, shall be paid in 10 equal monthly instalments starting from 15^th February 2026 and subsequent instalments shall be paid on or before 15^th of every succeeding months.

2. Petitioner shall continue to pay the regular EMIs/instalments along with the instalments directed above.

3. In the event of default of any one instalment, or the lumpsum amount as directed above the respondent Bank shall be entitled to proceed in accordance with law;

4. All coercive proceedings shall be kept in abeyance to enable the petitioner to repay the entire amount directed above.

The writ petition is disposed of as above.

Sd/-