The court permits a surety to repay a loan in installments, balancing creditor rights with debtor circumstances.

JUDGMENT

(Dated this the 20^th day of Januay, 2026)

The petitioner, is a surety for a loan taken by one Sreejesh. He is challenging proceedings initiated by the respondent bank under the SARFAESI Act for recovery of the amounts due.

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 borrower committed default in repayment of the loan and the outstanding amount as on today comes to Rs.8,25,001/-. It is further submitted that as the recovery proceedings have been initiated, the respondent Bank is not willing to accept repayment of the outstanding amount in limited installments.

This is recorded.

4. It is true that the original borrower has approached this court by filing WP(C)No.16548 of 2022 and this court has permitted the borrower to pay the overdue amount in installments and the borrower has not complied with the same.

In view of the fact that the secured asset is the property of the petitioner being the surety, and living in the secured asset, he wants to wipe off the liability of the borrower. Therefore, I am inclined to grant an opportunity to the petitioner to repay the same on the following conditions:

(i) The petitioner shall pay the outstanding amount, of Rs.8,25,001/-(Eight lakhs twenty five thousand and one only) along with any accrued interest, cost and allied charges in twelve equated monthly installments.

(ii) The 1^st installment shall be paid on or before 20.02.2026. The remaining installments shall be paid on or before the 20^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.

Sd/-