Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(Ker) 7003

IN THE HIGH COURT OF KERALA AT ERNAKULAM
BASANT BALAJI, J
SHAMNAD A. – Appellant
Versus
AXIS BANK LIMITED – Respondent
WP(C) NO. 2797 OF 2026

Advocates:
For the Appellants/Petitioners: SHRI.T.T.RAKESH, SMT. T.H.RAIHANATH
For the Respondents: SHRI.MADHU RADHAKRISHNAN

The court established that the petitioner must adhere to a structured payment plan to address loan default under the SARFAESI Act, averting asset possession.

Headnote:(1) The judgment concerns non-repayment of a housing loan governed by the SARFAESI Act, where the petitioner defaulted, and a notice was issued under Section 13(2). (2) The main issue framed by the court revolves around the Bank's notice and its intention to recover dues. The court determined the liability amount and structured an installment payment plan to avoid asset possession. (3) The final order mandates that the petitioner pay an initial amount of Rs.50,000/- and follow with installments to settle arrears, with possession actions put on hold.

Table of Content
1. housing loan default and applicable recovery measures. (Para 1)
2. bank's position on loan regularization. (Para 2)
3. court's structured payment order and possession safeguards. (Para 3)

JUDGMENT

(Dated this the 23rd day of January, 2026)

The petitioner availed a housing loan of Rs.16,80,070/-

from the respondent bank in the year 2022. Due to non- repayment of the loan amount, the loan account was classified as NPA. The Bank issued Ext.P1 notice under Section 13(2) of the SARFAESI Act followed by Ext.P4 notice of the Advocate Commissioner. Aggrieved by the same, the petitioner filed this writ petition.

2. The learned Standing Counsel for the Bank, on instructions, submits that the overdue amount as on date is Rs.3,74,435/-. The Bank has no objection in regularizing the loan account.

3. 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 pay a lumpsum amount of Rs.50,000/- (Rupees fifty thousand only) within a period of one month from today.

b) After making the payment of Rs.50,000/- as directed above, the petitioner shall pay the remaining overdue amount in eight equal monthly installments.

c) The first installment is to be paid on or before

15.03.2026, and the remaining seven installments on or before the 15^th day of each succeeding months.

d) In case of failure to make payment of the lumpsum amount of Rs.50,000/- or any 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 the law to realize its dues.

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

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

BASANT BALAJI JUDGE

ncd

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2026 Supreme(Online)(Ker) 7003

IN THE HIGH COURT OF KERALA AT ERNAKULAMBASANT BALAJI, JSHAMNAD A. – AppellantVersusAXIS BANK LIMITED – RespondentWP(C) NO. 2797 OF 2026

The court established that the petitioner must adhere to a structured payment plan to address loan default under the SARFAESI Act, averting asset possession.

IN THE HIGH COURT OF KERALA AT ERNAKULAM
BASANT BALAJI, J
SHAMNAD A. – Appellant
Versus
AXIS BANK LIMITED – Respondent
WP(C) NO. 2797 OF 2026