The court allowed instalment payments for overdue loan amounts, balancing creditor rights and debtor’s repayment ability under SARFAESI Act.

JUDGMENT

(Dated this the 3^rd day of February, 2026)

The petitioner availed a loan of Rs.31,68,242/- from the respondent on 19.12.2023 by mortgaging a property comprised in Re.Sy. No.742/1, Block No. 25, Eravipuram Village, Kollam Taluk. Due to default in repayment, the loan account was classified as a Non- Performing Asset (NPA) on 03.01.2025. Thereafter, the respondent issued a notice dated 24.01.2025 under Section 13(2) of the SARFAESI Act . Subsequently, the petitioner received a notice dated 07.01.2026 from the Advocate Commissioner appointed by the Chief Judicial Magistrate Court, Kollam, in M.C. No. 1576/2025. Aggrieved by the said proceedings, the petitioner has approached this Court seeking an instalment facility to clear the overdue amount.

2. The learned Standing Counsel for the respondent, on instructions, submits that the overdue amount as on date is Rs.7,72,570/-. The respondent 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 respondent is proposing to take physical possession of the property and since the respondent 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.1,50,000/- (Rupees one lakh fifty thousand only) within one month from today.

b) After making the payment of Rs.1,50,000/- as directed above, the petitioner shall pay the remaining overdue amount, together with any accrued interest, costs and allied charges, in ten (10) equal monthly installments, starting from 05.04.2026 and the subsequent installments shall be paid on or before 5^th of every succeeding month.

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

d) In case of failure to make payment of the lumpsum amount of Rs.1,50,000/- or any of the installments as directed above, the respondent shall be entitled to proceed in accordance with law.

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

SD/-